Do you use candlesticks with this? MAs are lagging indicators and they change within a specific time segment. What do you use to reinforce your MAs’ case?
This very simple method does have some potential for building up pips and can be further refined with other indicators.
Are you trading this daily or only very occasionally? You have so far posted very few actual results.
what time frame are you generally using (although it can be applied to almost any) and what type of MA are you using, EMA or simple, etc?
I prefer EMA and you can have re-entries if you consider the first method. I would suggest and recommend people understand price action and not just look for a step by step view is there is no perfect system. When the cross occur, look at the longer time frames to see what those trends are as well. if you paper trade or demo trade and keep a proper journal you will notice that this is very profitable … I have seen many many systems on here and each trade is different so no matter the steps, you need to apply some discretion and this is based on multi time frame views, Support and Resistance and price action. Coupled with any news events.
EG mine for today
-
Currency pair: AUDUSD buy
Amount traded:1 microlot
Opening price: 0.76715
Closing price:0.76865
Pips gained as profit:15 -
Currency pair: GBPUSD sell
Amount traded:1 microlot
Opening price: 1.41365
Closing price:1.41548
Pips as loss: 18.3
This was as I was busy and didnt lock in profits when I should have. -
Currency pair: USDJPY buy
Amount traded:1 microlot
Opening price: 109.280
Closing price:109.309
Pips gained as profit:2.9
I use a manual 5 pip trailing stop.
I also mainly use EMA’s but also a SMA ribbon. I totally agree with your comment about multi timeframes. I usually use at least 2, sometimes 3, timeframes to give a good perspective on what is actually going on and whether there is a trend in which to keep positions longer or only a retracement with a near-term target.
I tend to use the same model on every timeframe and switch them according to my overall view of volatility. E.g. today, I didn’t anticipate much happening and relied on 15m/5m/1m charts whereas when it looks more “trendy” then I’ll upgrade to 1H/30m/15m. But I also look at Daily/hourly each morning to get a feel for the day’s prospects, events and key levels.
I only trade EUR/USD and look for 1/2 trades per UK and US sessions. This morning gave a nice 20pip move off the 5m/1m and then died. There was another nice up move after the numbers which again I had to view as short-term as hourly and 15m still down/neutral.
The core of my method is very similar to the basic method that Moneybaggy put here and that was why this thread interested me. But I have a few more “bells and whistles” on it such as this timeframe issue which I consider imperative.
This doesn’t seem worth the effort. I’m new to FX and make these amounts of pips after scalping for an hour or so with less risk. No offense to your system, but I think you should do some research and try to put more into it. No, it doesn’t need to be complex but it does need to offer some prettier R:R in my opinion.
Thank you for your advice, Profitcy…but are you not the same Profitcy/Jason who, only a few days back started your own thread entitled: “Desparately need help” in which you wrote:
You also introduced yourself as:
Occurs to me to ask have you ever read Aesop’s fable about the “Tortoise and the Hare”?:
[I]"…Hare ran down the road for a while and then paused to rest. He looked back at Slow and Steady and cried out, “How do you expect to win this race when you are walking along at your slow, slow pace?”"[/I]
1 Like
[QUOTE=“Manxx;759589”] I also mainly use EMA’s but also a SMA ribbon. I totally agree with your comment about multi timeframes. I usually use at least 2, sometimes 3, timeframes to give a good perspective on what is actually going on and whether there is a trend in which to keep positions longer or only a retracement with a near-term target. I tend to use the same model on every timeframe and switch them according to my overall view of volatility. E.g. today, I didn’t anticipate much happening and relied on 15m/5m/1m charts whereas when it looks more “trendy” then I’ll upgrade to 1H/30m/15m. But I also look at Daily/hourly each morning to get a feel for the day’s prospects, events and key levels. I only trade EUR/USD and look for 1/2 trades per UK and US sessions. This morning gave a nice 20pip move off the 5m/1m and then died. There was another nice up move after the numbers which again I had to view as short-term as hourly and 15m still down/neutral. The core of my method is very similar to the basic method that Moneybaggy put here and that was why this thread interested me. But I have a few more “bells and whistles” on it such as this timeframe issue which I consider imperative.[/QUOTE]
Please do share with me the bells and whistles
[QUOTE=“TheProfitcy;759639”]This doesn’t seem worth the effort. I’m new to FX and make these amounts of pips after scalping for an hour or so with less risk. No offense to your system, but I think you should do some research and try to put more into it. No, it doesn’t need to be complex but it does need to offer some prettier R:R in my opinion.[/QUOTE]
If you dont like it, dont use it.
Where is your scalping system to help others?
Hi Snipes,
I don’t generally give detailed descriptions of what I do because I am too scared of influencing anyone and they would end up losing money because of me! But since I did mention the bells and whistles I will add one chart here which I hope shows the kind of thing I mean. There are many ways of fine-tuning such a core MA crossover system and I am sure anyone can find overlays that fit their requirements.
This chart is a 5min EURUSD from last Friday. I use a 5min whenever I feel there is not much chance of a big move occuring. The green “rainbow” covers a spread of ema MA’s from 15 to 50 as per the thread owner’s recommendation. But I have also an RSI which should also be on the same side of the 50 level as the “rainbow”. One can enter trades with a high probability if one follows the wax and wane of the rainbow and the red/black ribbon helps define the point of entry. A stop can be placed below the rainbow or ribbon and is actually quite close. Exit can be a fixed R:R, fixed pip amount, a close under the ribbon or when the ribbon recrosses. Then just wait for the next cross…
I also keep an eye on the 15min when using the 5min and if they agree then the move is usually more certain and continues longer.
This is a rather pathetically simple little method and I am a bit embarrassed about even describing it here, but it does bring in pips and at least it demonstrates how a simple MA crossover can be tweaked for a better performance and avoiding false moves. I only post it as an example, not as any kind of recommendation.
Hi Manxx
Thank you. Well i have learnt not to take anything as is but apply my mind. So thank you for sharing. It is more for me to learn more and understand more.
The rainbow is other MA’s i assume? (Would love to know the periods for those).
Agree with RSI which filters out alot.
Thank you
Glad that it is of interest to you 
I guess you are referring to the ribbon when you ask the periods? Actually, I would rather not detail that particular ribbon here as it is my own development and still under work. But, if it interests you, I will show you here another similar ribbon/rainbow combination that I do still use and which I can detail the content. This ribbon method is certainly nothing new but I evolved it together with some friends. I have written a pdf guide for it which I can link here if this interests you.
These charts have a combination of two ribbons both based on Simple MA’s and not EMA’s (but the rainbow is still a 15=>50 EMA mixture). All MA’s are based on a “typical” calculation (H+L+C/3) which helps smooth the curves. The red/black ribbon is an 8-period SMA and another 8-period shifted forward 1 period. The blue/black ribbon is a 12-period SMA and another 12-period also shifted forward 1 period.
These ribbons work well in trending markets and help keep you in a trade even with a 5m chart. E.g. the example below from 12.4. gave a 50-60 pip trade. Its problem is that it whipsaws in quiet markets and goes like spaghetti - but when the ribbons are overlaid on the rainbow it helps identify which trades are worth taking and which are risky. It is also important to try and keep to active periods in the market (although even on a 1min chart this can scalp a few pips ).
Interestingly, the same model gives quite a good indication of trend on the higher timeframes and I have attached a Daily EURUSD to show this.
Apologies to Moneybaggy if I am stepping on his toes on his thread here, and please remember that this is only intended as a demonstration how MA systems CAN work when combined with complementary indicators.
Awesome stuff. I had some ribbon reading somewhere but for the life of me I cant find it. So when you mentioned it I tried searching for it but no idea where it is. Please do share the PDF.
sorry Moneybaggy if we overstepping.
Sent to you.
Thank you Manxx, Moneybaggy apologies again for diverting from your original thread. we will take our discussion offline.
Here is the result for today based on my trading system:
Broker: Profiforex (Standard account)
Trading System: Moving Averages
Signal:Sell
Currency pair: EURUSD
Amount traded:1 microlot
Opening price:1.11121
Closing price:1.10875
Pips gained as profit:24.6
Which “today” are you referring to? According to my charts the EURUSD range for 19.4. was 1.1303 - 1.1384? The last time EURUSD was as low as 1.10875 was 16.3.?
Is there an error here in pair, date or prices?
Here is the result for today based on my trading system:
Broker: Profiforex (Standard account)
Trading System: Moving Averages
Signal:Buy
Currency pair: EURUSD
Amount traded:1 microlot
Opening price:1.12553
Closing price:1.13156
Pips gained as profit:60.3
Hey mate, could you send the PDF file my way as well?
Sorry OP for derailing your tread.
Here is the result for “2-5-2016” based on my trading system:
Broker: Profiforex (Standard account)
Trading System: Moving Averages
Signal:Buy
Currency pair: EURUSD
Amount traded:1 microlot
Opening price:1.14811
Closing price:1.16012
Pips gained as profit:120.1
Here is the result for “10-5-2016” based on my trading system:
Broker: Profiforex (Standard account)
Trading System: Moving Averages
Signal:Sell
Currency pair: EURUSD
Amount traded:1 microlot
Opening price:1.14098
Closing price:1.13777
Pips gained as profit:32.1