very easy system

[whyme250]

I use the 50 sma on a daily chart and if the chart is above I buy the currency if the currency is below the 50 sma i sell it

[xtraction]

Originally Posted by whyme250

I use the 50 sma on a daily chart and if the chart is above I buy the currency if the currency is below the 50 sma i sell it

How long have you be trading this system? How do you decide to exit?



What do you do when the candle crosses the 50 sma? Do you add to winning positions the next day?

[dobro]

Originally Posted by whyme250

I use the 50 sma on a daily chart and if the chart is above I buy the currency if the currency is below the 50 sma i sell it

Do you wait for the candle to close or enter upon an immediate cross or cross plus so-many-pips?

[spaceage9]

Has anyone done any backtest or live trades using this?

[TalonD]

ah... a slanted line. Works as good as a horizontal one

[pipso facto]

Originally Posted by whyme250

I use the 50 sma on a daily chart and if the chart is above I buy the currency if the currency is below the 50 sma i sell it

Simple systems seem to work best. I like this.

[Shr1k]

ah... a slanted line. Works as good as a horizontal one

This is true
Thats why I trade in circles

From the chart it looks like you may have better luck trading towards the line??

[dobro]

How does one go about an entry for this strategy? Immediately upon crossing the 50ma? Or a stop order of 10, 15, or 20 pips from the price at the line? Wait for the Daily close and see what happens next? As has been said in many forums, simple doesn't mean easy.

[TalonD]

This is like a moving average cross over strategy, The fast moving average is a 1 period which is the same thing as current price. The slow period in this case is 50MA,

(At the extremes, a MA with an infinite period would be flat horizontal and one with a zero period would be straight vertical )

The hard thing about MA crossovers is staying out of trouble when the range starts. 1H is tricky enough. Good idea to use a daily, you would have more time to react to changing conditions.

[pipso facto]

Originally Posted by dobro

How does one go about an entry for this strategy? Immediately upon crossing the 50ma? Or a stop order of 10, 15, or 20 pips from the price at the line? Wait for the Daily close and see what happens next? As has been said in many forums, simple doesn't mean easy.

If price breaks 50 day MA enter long (with n% equity)
If price breaks below 50 day MA close long and enter short (with n% equity)

Simple enough.