This system is VERY easy and not time consuming at all. Plot a 20 EMA and 10 EMA on a chart and everytime the 10 crosses down the 20 enter a short on the USD/CHF and anytime the 10 crosses above the 20 enter a long on the USD/CHF. So far this year this has netted 2546 pips and only 34 trades. Only check it once ever four hours for a crossover and make sure you place a 200 pip trailing stop loss! The biggest loss this year has been 100 pips and the biggest gain has been 535. USD/CHF trends ALOT so it an excellent system that has actually been around for years. Had you started with $10,000 in January and traded one standard lot per $10,000 your account would now stand at…$63,000!!
What time frame, captain? I can backtest this in five minutes. 
And when the USD/CHF stops its strong moves, this system stops making money. Almost any trend following system would have caught good profits in the U/C lately.
2CodeMeister: Which is not a reason to ditch this trading system in general. There are several ways to determine if the market is trending or not, and use the right strategy for the particular market conditons. 
This is a very ordinary system and should not be touted as being something special. I dare say a HAS or one of many breakout systems would have shown similar results trading the U/C. The credit should be given to the right reason (unusual move) not some coincidence.
As far as determining whether the market is trending or not - that would be worth touting - if it worked. Most of the trend detection systems I have seen fail because they signal the trend has started or is over much too late (lagging). In that regard an MA crossover behaves much the same - too many false signals in ranging markets.
Wow! Its on the 4 hour time frame…how about some backtesting before you excuse the strategy people? Go back years and you will see it works; it has for years. And when you see collapses of certain countries and economies this proves to be even more succesful (which is by the way the season we are in now).
You can take any two MA’s and turn profit on a cross of them in trending markets. The problem is when one knows the market is trending or not. Generally, those assertions are made after the fact.
CodeMeister: In relation to the recent moves in this currency, the crossover actually happened after the fact so you were not able to capitalize on the 800 pip move in a matter of minutes that happend in September. In fact when that happened you were in a short position because the trend had been down and the trailing stop took you out with a nice profit on the short end.
mastergunner99: You do not need to know if the market is trending or not. 2500 pips this year and you were in EVERY trade, both when it was trending and non-trending. This is the only time frame and currency pair that I would use for a crossover system like this. The others simply do not work.
Again, lets backtest and find out it works before shouting down the opportunity!
When your pair hits a range, you’ll know what I’m talking about. By all means, enjoy your successes, but I’ve never seen a standalone crossover ever be successful in the long run.
Yes and it has hit ranges multiple times this year…so i know what it feels like…you cant just give up on a strategy because you have a few losses…its part of the game. Even so, 2500 pips so far this year is very nice. Show me any other strategy that is this simple and only takes one glance at your computer every four hours, if that.
Like I said, this is the ONLY pair and only time frame that works that I have ever found; and it has worked for many years.
Hi doriotcapital,
Nice advice, Is this system works for eur/usd?
Simple doesn’t mean irrelevant. Although this is pretty famous method, I really like this if you trade with commodity-based currencies (i.e. Swissy, Aussie, and Loonie). This will be much more effective (especially if one would like to trade in shorter time frame) if this is combined with fibonacci retracement.
Hi doriotcapital
Does this work now since the CHF is linked to the EUR, I don’t usually trade the swissy so I am clueless as to it’s usual
behavior, but your system will work, the sl is just very big, one failure takes many wins to catch up.
Hey, just curious what the result of the backtesting was?
How to gain 300 pips a month even easier:
- Sell EUR/USD
- Set TP to 300 pips
- $$$
Just a joke but the funny thing is that it would probably work 
Do you take the trade as soon as the 10ema crosses above or below the 20ema or do you wait for it to close above/below it aand then take the trade? Are the ema’s applied to the close? How do you determine your exit?
I am not knocking, genuine question: do you think that this will continue to work now that the SNB have publicized the level they will defend, and indicated that they will intervene in future should that level be breached? I am largely a trend-based trader, but have largely avoided the CHF Pairs since the recent SNB intervention. Interested to hear your thoughts on this.
ST
Nice strategy. I did a back test. Results are close to Doriot. Here are the results:
[B]USDCHF:[/B]
One year back test from Sep 2010 to Aug 2011. H4 Chart. 10 EMA and 20 EMA
Each time they cross sell or buy. Stop loss 100 pips Take profit 100 pips. (sorry Doriot I know you use 200 pips stop loss. I guess that’s why my pips are less than yours. But I couldn’t afford 200 pips SL)
[B]Result: 2080 pips in one year.[/B]
[B]USDCAD:[/B]
One year back test from Oct 2010 to Sep 2011. H4 Chart. 10 EMA and 20 EMA
Each time they cross sell or buy. Stop loss 100 pips Take profit 100 pips. (sorry Doriot I know you use 200 pips stop loss. I guess that’s why my pips are less than yours. But I couldn’t afford 200 pips SL)
[B]Result: 2780 pips in one year.[/B]
What if markets stop trending? ST or experience traders your input please.
I just went from bar to bar to back test. If someone knows a faster way to back test a system please let me know. It took me two days to back test on USDCHF and USDCAD.
Regards,
Hey Fx280,
I agree, great stat. and good work on the backtest, I’m demo trading this one now.
regards