50 SMA trading strategy
search the web for J@ck@l Jucer edition 5.pdf it about a very similar strategy
More Information Please
Greetings,
I'm interested in this system; is this identical to the Jackal system? Has anyone traded it live? If so, what are the results?
Thank you.
Wow, doing a simple backtest of this for the month of November shows a huge number of losing trades. Many times the market drops right to the fractal number and then shoots up again, taking out any stop losses that would be set.
Dreamliner:
Wow, doing a simple backtest of this for the month of November shows a huge number of losing trades. Many times the market drops right to the fractal number and then shoots up again, taking out any stop losses that would be set.
Wow, doing a simple backtest of this for the month of November shows a huge number of losing trades. Many times the market drops right to the fractal number and then shoots up again, taking out any stop losses that would be set.
Ok, so you don't think it's a good system to trade?
fxvoilaaa:
Ok, so you don't think it's a good system to trade?
Ok, so you don't think it's a good system to trade?
Not as presented here, no. Way too many false signals.
Dreamliner:
Not as presented here, no. Way too many false signals.
Not as presented here, no. Way too many false signals.
Ah well, can't say I'm surprised.
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
I am trading this strategy now and it looks very promising and is completly mecanical on the entry.
I have to look for a good exit strategy.
Necessary indicator :
50 SMA for 15M (faster period on longer TF)
Fractal (i use support&resistance indicator which is a fractal based indicator because it's easier on the eye )
Rules :
You wait for the price to pierce the 50 SMA then you wait for a fractal to develop in the direction of the break. For those who dont know what a fracal is, it is simply put a 5 candles cluster that looks like this.
To be more exhaustive, a fractal is for a up fractal , a candle between 4 lower candles (2 lower candle, an higher candles, 2 lower candles)
For example, if the price breaks the SMA to the upside, you will wait for an UP fractal to develop above the SMA. You should not consider DOWN fractal is they are above the SMA.
All you have to do now is to put a pending order on the fractal level in the direction of the break. Your SL should be a fixed figure based on ATR or more simply take the previous reversed fractal and make a proper risk calculation.
Sidenote : you should not take a fractal break if you missed the previous fractal break in the same direction. If you missed the trade, too bad for you. You can still use fib retracement or sexy stochastics to enter a trade you miss but do not use fractal break for this.
Take profit :
- minimum should be 2:1 hence if you have 2 losing trades and one 1 winning trade you are breakeven but this system can offer much more than 2:1.
- Other option is to move your SL with the fractal forming but you might get stopped out when the fractal is near the SMA. But i will largely reduce the loss on your losing trades.
- Last option is to move your SL until you can start to use the SMA50 on the next TF and when you are in a very big move you could go as far as the move goes.
Look at the screenshot below. It is of course a best situation but 9 winning trades in 10 trades (i just figured that i forgot one trade at the very end which could lead to loss) over 4 days is not a bad winning percentage, is it ?
All we need now is a good exit strategy.
Tell me what you think
Addition : if there is a fractal formation before a break of the SMA but one of the candle of the fractal formation is break the SMA, you have a valid formation for an entry.
SMA50 seems to be fine one 15M but looks too slow on longer TF. You should use shorted period on longer TF. For example on H1 you could use 20 or less.