I lost 10 pips per day by using a trend strategy, why?

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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What exactly about the arbitrage is not clear for you? Ask precise question please :slight_smile:

Yes, Epidot, exactly. Thank you. You are right. The stop loss should be important.

Yes, Ontario. As discussed, the arbitrage is the key point. But if you sign in to different accounts, how will you manage them?

Try to optimize your strategy just a little bit. From the chart you placed it is clearly showed that your chances are below the half. Also it will make sense to the higher time-frames. What you currently have is good for a demo account but not if you want to make money.

“Close going above SMA(20) go long, Close going below SMA(20) go short.”

Ok… two things. With such a simple rule what makes you think you can profit when 99% of other people cannot?

Also when price crosses above the MA you now have a long signal. But you have already missed the move. By the time price is crossing above the MA (Laggin Indicator) the institutions are selling retail for profits. They will be selling against buyers (you). This is the mistake retail traders make and why the market sentiment is always the opposite of the banks. Trade with the banks not against them. Enter when they enter… Buy at wholesale and sell at retail. You cannot do this with moving averages.

Thank you, Eroedon.
Actually we are optimizing our strategies. But the results seem we are wasting time…

Thank you, Epidot.
Actually sometimes, this strategy worked. we use M1 period. is that too small to make the strategy not work?