I’m new to Forex. Does anybody else use this strategy? Say the five day average high of the Yen is 93, and the five day average low is 91. You set up to buy towards the high and sell towards the low. Seems like a basic and safe strategy or am i missing something that makes this a bad idea?
Thanks
So you mean something like a breakout strategy? I think these work pretty well. I use the EA Avonko Elite and from what I can tell this is pretty much what it does for the EURJPY pair and GBPUSD pair. I have been testing it for a long time now looking to risk some capital and it works very well on the EURJPY pair and very well on the GBPUSD pair, so for at least these two I think your idea is sound.
The only question I have for you is how do you determine what time periods you use to determine your ranges for setting these orders, and how to you determine when to stop your losses if it goes against you? I know Avonko places orders based on overnight ranges, and I am not supposed to use it during days when significant economic releases come out, because of the whipsaw moves that make buying the highs and selling the lows pretty painful.
Have you tried this strategy at all, whether backtesting, demo trading or live trading?
Curious to see what you have seen
I advice you to make some search about a system call EMA cross.
all about you are thinking about is in.