Ride the wave (all PA, STRICTLY no indicators. No, just NO)
Posted 01 February 2016 - 12:57 PM
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Posted 06 February 2016 - 10:26 AM
This is an attempt to redeem myself for wasting people's time on a less than average strat. Whilst trading Forex, I have found that using 2 moving averages (I use the slightly smoother 60, 200 ema) really helps keep you out of whipsaw trades.
How I have studied and am planning to use it for FX is to trade a breakout only in the direction of the trend. The key is, and this part is the gold, not to trade on days when the emas are touching or close to each other. I have found that 100% of the time when they have, there has been the dreaded whipsaw. So unless you want to get rekt, dont do it. Also, avoid trades between the emas. I have found that around 50% of these get prone to whipsaws, whilst the other 50% are good entries.
I have found that this filters most bad trades for FX (3 months backtest on GBPAUD), and I assume most would be good for bins also, as this is a swing strat. Hope this bumps the ITMs!
No need to apologize or redeem yourself. You handle that with nothing but class.
- Tripack and tradesmart like this
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