I have been trading for a number of years with mixed success. Stumbled across something pretty cool (program based) and building that system steadily for some time now.
In mean time I decided to manual trader to pass some time. Decided on a very simple trending strategy that uses the standard devs of 14 SMA on the 5 & 15 minute candles to enter positions. Only been using this stuff for 4 weeks now, typically 4-5% risk per trade and have done some 60% return so far in the last 4 weeks.
Now I’ve been here before. Brilliant seeming strategy that beginners luck fools you into throwing real money into it, but this stuff is so simple and works so reliably that maybe it can fly long term. Will have to see. 100% of last 8 trades in a day were winners, made something like 11k on a 79k account.
Anyone with experience of simple PA trending strategies.
Greetings thanks for the reply. Standard deviation from the 14 SMA, the EA I currently use draws 3 arrows at sigma 1,2 & 3 respectively. The approach is for trending and trend reversal, actually i prefer to use it with trend reversal.
A simple entry might be (for trend reversal) a price cross of the 14 SMA on the 15 minute candle, then I would look at a price cross on the 5 minute SMA where the price crosses over the SMA and extends to the 2nd standard deviation (Sigma 2) from the SMA and the stochastic oscillator at default settings on the 5 minute confirms, then the stop loss would be set the other side of the SMA at sigma 2 also.
for ongoing trends. I would assume sigma 2 has already been crossed and wait for a bounce of the SMA line when the trend continues before getting in. it’s hard to describe because no situation is exactly the same, but if you have spent any time staring at the screen with an SMA trend line, you will know what I mean.
Hey thanks. This is not the EA i’m working on. It’s a quick fix up to position size and tell me where the sigmas are. have a look at the power point should make more sense.
The movable blue line is where the SL will be, so I click ‘Enter’ to get in on the trade with the SL at wherever blue is moved to.
This detailed approach seems as valid as any so I have nothing negative to say about it specifically.
But it is the case that trading does not have to be complicated. In fact, the more complicated you make it, the more likely you are to fail to abide by the basic requirements which would be -
if price is rising find a place to get long
if price is falling find a place to get short
set a stop where price indicates it is ceasing rising/falling
risk only as much capital as you can afford to lose in the trade while allowing you to keep trading
don’t chase price
don’t be a buyer of a currency when everyone else is selling it.
Beyond these points, everything else is supremely unimportant academic detail, including -
SMA or E
14MA or 21
100EMA or 200
RSI or MACD or stochastic or ADX or tea leaves
10min time-frame or 15
candlesticks or bars
etc.
Yeah, if you have proper knowledge about the Forex Trading, it would be an easy task. You need to have lots and lots of practice. Than it would be quite easy for you.
I suppose the saying it’s easy when you know how would apply. Hopefully I will know how shortly.
I think i big part of the problem is trading funds and setting realistic goals. Definitely even without much knowledge you should beat most retail investment products out there.
And it is, would be easier if any given 3-4% return was a meaningful amount of money for you.
trading can be easy when trader do it with experience , skill and knowledge. He needs to manage his account , emotions and risk according to the market. Forex risk are manageable if one tries it again and again. When you are able to understand market it will easy to trade with it.
And the ability to control your emotions, because you might have all the knowledge, skills and the know how, but if you don’t have the right response to bad news then there is a problem.
Yes forex trading can be easy if you learn it from a good mentor. In this way you can easily know what are the important points that ar necessary to learn first and then go with time with sequence.
Call me pedantic, but trading itself is easy, very repetitive and typically pretty dull: it’s the process of [I]learning how to do it safely and profitably[/I] that’s so supremely difficult and time-consuming.
Yes it can be easy. If you trade with good money management after good knowledge and experience, then it can be very easy. But you need extreme patience to make it easy.
You are right as forex trading may seems easier however it is really hard to earn money though it because it is a very professional market. So it is good to learn trading before investing in it.
