simple & easy profitable 1H strategy... - page 2
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Hi all, This is my 1st post so be gentile. I have seen that there are so many advertisement on these forums and what not trying to get you to use the newest EA and other crap with promises of impossible gains. Well I can assure you I dont want your money. I would rather use my time trading my system than trying to trick you into sending me money via paypal.THE SYSTEM. 5 linear weighted moving average21 ema THATS IT!RULES:using 1h candles on any currency pairs during overlapping trading hours wait till the 5 lwma crosses the 21 ema and enter your trade. exit trade when re crosses and repeat. obviously for a buy signal wait till the 5 lwma crosses the 21 ema moving up and then sor sell do opposite.Important rule!!! only exit trade when there is a cross over, it will get close many times if it is a really strong trade, this is what we want! if you enter and the lines cross within 2-3 candles of each other the market is horizontal and wait it out till you see a cross with 2-3 candles and no signs of weaving. Guys the proof is in the charts, load this into you platform and you will see exactly what im talking about. its kind of scary as to how well it works. feel free to send me a PM or something of You have any questions otherwise Ill do my best replying to posts here.P.S. the extra EMAs in my chart are there just for shits and giggles, they are not necessary.
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some idea?
I'm going crazy to find optimal TP and SL.
some idea?
I'm gonna give it a thought:
The presented strategy is a modification of the very basic MA cross strategy. The idea behind these strategies is to allow the price some freedom to run ("let your winners run") and with the SL only as a safety net as long as no opposite signal (crossing) is generated. So with MA cross strategies conceptionally there is otherwise no reason to get out of the trade, so "optimal TP and SL" somehow is a contradiction to the underlying idea in this case.
However, I think there is something interesting about the variation of absolute distances from the current price where we can expect exit signals in strong trends versus ranges, which is one reason why these strategies are so easily killed by whipsaw periods:
If we have strong trends this means that the fast moving average is running away from the longer period average (slow MA), we get a higher separation between the two and therefore in strong trends there is a lower probability of being stopped out by an adverse crossing signal or an actual SL (as a trailing stop). This is why I think that we can afford to keep the stop distance closer during stronger trends (in general, not only for MA strategies) and thereby give away a little less of our gains once the trend move is over. This leads to dynamic trailing vs. fixed distance trailing.
On the other hand: when trends are absent slow and fast MA are almost identical (=almost no separation) and we get exit signals all the time, which is why the exit strategy should be more liberal during ranges. However, MA cross strategies can't deliver that. Either there is a crossing or there isn't. MA cross strategies aren't adaptive enough at this point.
I think the replies on this quora page might be helpful for the whipsaw ( The ideas of other traders trying to solve this problem)
https://www.quora.com/Is-there-any-way-to-reduce-whipsaws-in-a-moving-average-based-trading-system