One of the simplest trading strategy for newbies

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44

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

Thank you very much

46

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] :wink:

47

[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

48

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

49

moneybaggy.

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

50

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

52

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

53

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

54

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

55

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.

56

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

57

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

58

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. :slight_smile:

59

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?

60

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 :slight_smile:

61

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

62

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) .

63

So you are using both of these strategies?

Can you please tell us more? What timeframe? Which currency pairs? What about exit rules? What about stop loss?

64

Are you referring to Moneybaggy’s opening post MA strategies?

I haven’t seen him posting in a long time now, but that does not mean that these are now extinct ideas.

These are very basic strategies but based on sound principles. I.e. that if the ave price over recent time (e.g. 15 time periods) is greater than the ave price over a longer period (e,g, 50 periods) then it indicates that the price is generally moving higher and vice versa.

But we all know that simply mechanically trading MA crossovers does not work consistently over time. There are always periods of low activity that produces whipsaws and the crossovers alone do not give an early enough warning that the move is exhausting itself. But for entry levels these are quite reasonable and realistic MA values to work with. ( various combinations of MAs with values ranging between 5 and 50 have been a core part of my trading approach for many years and I have no reason yet to change that).

But there is a need, I think, to have some kind of filtering method to avoid some fakes and some other method to determine target/exit levels if one is not using fixed targets.

65

Yes, the question was regarding the opening post. But I actually liked the idea of trading with MA ribbon. I have been using moving averages for last few years and I really like them. I am currently testing my own system based on MAs. It’s a system for long-term trading because I have a full-time job and I can’t sit in front of my laptop for whole day, but I needed some simple system that I could follow after work, so I will try to use the “ribbon system”. I will try it on some micro account first and see if it works.

Here is my idea:

  1. I will trade 15min charts with 2 MAs calculated using the “typical price” (6-period and 6-period with shift=2)
  2. I will check the trend using 1 and 4-hour charts and 200MA (bullish trend if price is above the 200MA etc.)
  3. I will also use RSI 14 with level 50
  4. When crossover happens, I will check if last candles body was completely above/below the ribbon and if RSI is above/below 50 level
  5. Set stop-loss above/below the ribbon
  6. Exit if the crossover happens in the opposite direction

What do you think about it?