A trading system based on measuring the speed of movement of two moving averages | Download EA for free
A couple of days ago, I tested a simple, yet highly effective, entry method for trending symbols. This can also be called a method for measuring price momentum. Below, I'll detail all the elements and settings of the trading system using this entry method for XAUUSD H1.
Start with $200, results using reinvestment
I continue to test different market entry methods. This is especially convenient when using a very flexible indicator. The potential of a new idea is immediately apparent. In my tests, I use the Moving Average Cross Signal indicator (two moving averages).
- You can learn the principles of the system's calculations, view the reports and conclusions I have obtained.
- You can also download the free Moving Average Cross Signal indicator and a ready-made, pre-configured system for buying Gold (XAUUSD). The indicator is required for the system to work. Download the EA .
Trading system rules
Entry: To enter, we need to calculate the speed of the fast moving average relative to the slow moving average. Once this speed exceeds the threshold (the "SpeedMA" parameter), we open a long position.
Exit: We'll exit using a stop-loss, take-profit, or trailing stop. These parameters are specified as percentages.
This is what a good system trade looks like
Constant lot test
Conclusions
The simple idea of measuring the velocity between two moving averages proved to be quite effective, especially on hourly gold. The system isn't overloaded with conditions—we catch the impulse when the velocity exceeds a threshold and exit according to fixed rules. Backtesting looks promising. If you want to delve into the settings or test the idea on other instruments, you'll need an indicator. Moving Average Cross Signal and a ready-made advisor . Everything is freely available—take it and test it out.
