One of the simplest trading strategy for newbies

[Jessica_Brown]

Some traders tend to overlook moving averages,but this is not the best. We all know prices in the forex do not move in a straight line. Moving averages are very helpful in analyzing daily fluctuations yet some traders feel it is too simple to be profitable. But it is not the complexity of the system that makes it more profitable. A very simple system will still give you profits if used with correct understanding.

Hey, Vadet! Seems like you know a lot about the topic of moving average…
Can u tell me how it is better to combine moving averages, while trading live?

[TC_Holland]

Hey, Vadet! Seems like you know a lot about the topic of moving average…
Can u tell me how it is better to combine moving averages, while trading live?

Just look here. Cowabunga Forex System Daily Update: Wednesday, 05/18/2016

[Jessica_Brown]

Just look here. Cowabunga Forex System Daily Update: Wednesday, 05/18/2016

Thanks a lot :45:

[Mehmet83]

[QUOTE=“TC Holland;766479”] Just look here. Cowabunga Forex System Daily Update: Wednesday, 05/18/2016[/QUOTE]

Thank you very much

[lexys]

Found one interesting post about the moving averages in action. Can be helpful to read.

It’s absolutely [I]dreadful[/I], Jessica. It’s full of purportedly factual statements which are just plain [I]wrong[/I].

May I respectfully suggest that the section on moving averages in the Babypips School is far more helpful, as well as being far more accurate?

[B]Moving Averages Archives[/B]

[Mehmet83]

[QUOTE=“Jessica Brown;767930”] Hey Mehmet! Noticed you r also interested in moving averages. Lately, i ve been browsing web for more info about it. Found one interesting post about the moving averages in action. Can be helpful to read.[/QUOTE]

Hey Jess, thanks for the info, yes I enjoy moving averages in order to identify trends, how do you get on with moving averages? Or any other indicators?

Regard

[moneybaggy]

Here is the result for “27-5-2016” based on my trading system:
Broker: Profiforex (Standard account)
Trading System: Moving Averages
Signal:Buy
Currency pair: EURUSD
Amount traded:1 microlot
Opening price:1.11471
Closing price:1.11808
Pips gained as profit:33.7

[Farver58]

moneybaggy.

What SL or TP you use? is it a 1/3 or higher?

[moneybaggy]

Here is the result for “04-06-2016” based on my trading system:
Broker: Profiforex (Standard account)
Trading System: Moving Averages
Signal:Buy
Currency pair: EURUSD
Amount traded:1 microlot
Opening price:1.11423
Closing price:1.13604
Pips gained as profit:218.1

[moneybaggy]

Here is the result for “14-06-2016” based on my trading system:
Broker: Profiforex (Standard account)
Trading System: Moving Averages
Signal:Sell
Currency pair: EURUSD
Amount traded:1 microlot
Opening price:1.12648
Closing price:1.12198
Pips gained as profit:45.0

[moneybaggy]

Here is the result for “23-06-2016” based on my trading system:
Broker: Profiforex (Standard account)
Trading System: Moving Averages
Signal:Sell
Currency pair: EURUSD
Amount traded:1 microlot
Opening price:1.13343
Closing price:1.09739
Pips gained as profit:360.4

[BardBardy]

The Moving Average trading strategy is one of the simplest and it is very easy for beginners. Every new trader needs to know how to use this indicator. There are two ways it can be used. However, note that this strategy can only bring you little profit. Notwithstanding, you need to start small and work your way up. So do not ignore trading on MA. It is easy to use and gives clear trading signals.

You can use a Demo account for testing. As for me, I prefer a Live account. When testing a new strategy, I just open a $5 Micro account with Profiforex. This gives you $10 = 1000cents plus 1:500 leverage, which is enough to do some practice Live. It has its advantages.

[B]The First Strategy on Moving Average[/B]

Insert the Moving Average to your Chart (Period 30). Every other parameter remain the same

When the price is higher than the MV, it is a bullish trend.

When the Price is lower than the MV, it is a bearish trend.

[B][I][U]Signal[/U][/I][/B]

[B][I]The signal to buy occurs when the price crosses the Moving average from the bottom upward

The signal to buy occurs when the price crosses the Moving average from the top downward.
[/I][/B]

You can learn how to do this effectively with a practical video
[B]Trading On Moving Average Tutor[/B]

[B]The Second Strategy on Moving Average[/B]

The one requires two moving average with a different period.

Insert the first moving Average (Period 50). Other settings remain the same

Insert the second moving Average (Period 15) choose another color. Other settings remain the same

[B][I][U]Signal[/U][/I][/B]

[B][I]The Signal to buy occurs when the moving average with a shorter averaging period crosses the other with a longer averaging period from the bottom upward. If the shorter MV is crossing the longer MV downward, we place a sell order. [/I][/B]

Instead of the price line crossing the long term moving period, we use the short term moving average.

Most likely you would need a practical demonstration on how to use this strategy.

I would love to see a backtest of this system with just 4 majors.

[moneybaggy]

Hey Jess, thanks for the info, yes I enjoy moving averages in order to identify trends, how do you get on with moving averages? Or any other indicators?

Regard

Getting on with moving avergaes is very simple. Just set the period of your moving average and insert it on a price chart. You can also use exponential moving averages. The signal to buy simply occurs when prices move above the moving average from bottom.

[moneybaggy]

Here is the result for “4-07-2016” based on my trading system:
Broker: Profiforex (Standard account)
Trading System: Moving Averages
Signal:Buy
Currency pair: EURUSD
Amount traded:1 microlot
Opening price:1.1096
Closing price:1.1142
Pips gained as profit:46

[jhiers87]

Hi Manxx could I get a copy of that pdf by chance?

[anon46773462]

Hi Manxx could I get a copy of that pdf by chance?

Sure, it is included in this thread (not the very latest version, but that only included some minor, insignificant changes):

http://forums.babypips.com/free-forex-trading-systems/80124-ribbon-system.html

It is not my method but I do use it constantly with a few very minor tweeks to suit my own trading profile. I don’t use it as a “stand-alone” method, rather I include it as an integral part of my own method.

The document is really just a summary of the posts on the site where I was introduced to it and was written simply to help newcomers instead of having to wade through over 1000 posts on that site! As you can see on the linked thread, it hasn’t created much interest here but it is still alive and well on the original site (albeit quieter and subject to trolls and adverts!). Interestingly though, this thread here has led to a few of us sharing progress off-site.

In my opinion, it is at its best when combined with an underlying method (for example, such as the MA’s method on this thread) and used as a timing mechanism for fine-tuning entries and exits.

I would ask that if you have any subsequent questions, then please post them on that ribbon thread rather than here on Moneybaggy’s.

[billywhyte]

Hello Manx! Do you have a myfxbook account that we can see proof that it works? or maybe provide a screenshot of how you’ve applied this strategy?

[anon46773462]

Hello Manx! Do you have a myfxbook account that we can see proof that it works? or maybe provide a screenshot of how you’ve applied this strategy?

Hi Billywhyte,

No, I do not keep a myfxbook account. May I emphasise that I did not introduce this method to this site nor to the site where I first met it. That original thread was started back in Oct 2015 and is still active. I decided to compile the content of that site into the pdf to help newcomers there. In other words I am not promoting this method to anyone but I [I]do[/I] use it constantly and am happy to help anyone who may have questions about it including screenshots if you wish…but not here, this is Moneybaggy’s thread about a different method. The ribbon method has its own thread and there is a link to it in my above post. If you post a question there then I will try to respond to it there. Hope that is ok

[billywhyte]

Hello, we have not heard from you in a long time. Is your trading system dead?

[Keithen]

I prefer the EMA. It just makes more visual sense to me. I have only been trading for about a year and a half and I recently moved to a day shift job so I am in the process of building a new strategy. Currently, I use the stochastic, EMA and the Donchian (only on my High time frame) .