I lost 10 pips per day by using a trend strategy, why?
It’s a bad strategy?
Close going above SMA(20) go long, Close going below SMA(20) go short.
how many pips you can make from your trading strategy , it depends on your money management, so ensure exact money managing plan and earn regular profit.
oh, I see. Thank you for your help.
Which brokerage do you use?
I heard that brokerage will be a key-condition for trading.
Seems that you used wrong or losing strategy for trading. Remember that if there is something working available to public (read “surefire trading opportunity”) arbitrage forces will be quick driving price of the asset to new equilibrium where profit from the strategy shrinks to 0.
Welcome to efficient markets!
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To be honest, this MA crossover does not work all the time. Your best chance is lower than 50% as you use Stoploss. You must calculate ATR to define your stops and takeprofit targets. That’s not the only thing as well. Look at the higher time-frame. Are you trading against the trend?
I recommend;
- Stop trading both live and demo accounts for now
- Open 1 minute candle chart
- Watch it at least 3 hours a day for at least 22 business days (1 trading month)
- Start trading in Demo account at least 100 trades
- If you are confident, switch to your live account
But There are few platforms which provide chances to trade arbitrage. MT just supports login to only ONE account.
Thank you for your advice.
I’m trading by strategy based on trend.
I will try what you suggest.
Who was it who said that buying/selling the close of any bar above/below the 20EMA would be profitable? Because until someone has produced some statistics on this, its not a strategy yet, its just a theory. Even with stats, its still just an entry signal and as has been pointed out, how much money you make from a good entry signal will depend on exits, driven by money management.
But trend strategy taught us to follow this kind of rules.
I’m confused. So trend strategy is no use?
Not what I said.
Thank you anyway.
I will try other brokerage.
I would go long BELOW the MA (price is cheaper) and go short ABOVE the MA (price is high). However, being price below MA is not a trade signal for me…
Not a financial advice…
Thanks Dumani.
Aha!! I understood why we got the loss!
The programming language is the problem!
Seems you got me wrong. Trading edge or strategy arise from information asymmetry between market members. Information is valuable if it shows that current market price of the asset is different from its true (intrinsic) value. And we know that the market price is an approximation of true value (which exists only theoretically) which tends tends to converge to the true value in time.
If you get valuable information before others you can consistently make money because others will be late to bid up price to the fair value. You can ask yourself a reasonable question: if I use indicator or other trading stuff which is available for public use, is there any information asymmetry left in the trading insights which provides the indicator. Obviously the answer is no, means publicly available strategies can’t work.
Thank you Ontario, I agree.
And what you said arbitrage is awesome in your previous post. Why not introduce more?
Many thanks.
When will people learn that using common strategies don’t work. What do you think you can do better with moving averages that 95% of others can’t? The reason your trend strategy doesn’t work is it has you buying after a rally in price and selling after a fall in price. You are buying market and selling wholesale. The complete opposite to what you should be doing.
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This is what happened in this case and I believe its a regular occurrence in shorter time-frames. Just as long as new traders don’t come to believe that a) intra-day is the only and best way to trade, and b) that trend-following on the long-term time-frame is dead.
Thank you Epidot, exactly you are right. The difficulty is how to know when the complete opposite comes.
Thank you Tommor, yes, you are right. So I think Ontario got the point.
Look at supply and demand from a top form perspective. Highest time frame first. Look for fresh supply demand zones and trade between them with entry and stop loss either side of the zone.
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