SMA/RSI forex system
Indicators = RSI(5), 5 SMA
Timeframe = 5 hrs to 1 day.
Buy signal = If price crosses above SMA .and moves significantly above SMA then check RSI(5). If RSI is above 50 then it is a buy signal.
Sell signal = If price crosses below the SMA and moves significantly downwards then if RSI is less then 50, it is a sell signal.
No fixed TP or SL. When u see trend is changing then exit.
Stick to your rules
Pretty simple system. But at this time it is hard for it to pick trends. I think adding one more SMA (probably 150) can be useful in this case.
Originally posted by JogiPretty simple system. But at this time it is hard for it to pick trends. I think adding one more SMA (probably 150) can be useful in this case.
Yes I was thinking to add more Moving averages to make it more effecient.
Stick to your rules
Thx for sharing. Will try it out on a demo. Lets see how good is this simple system.
Originally posted by uniquetraderIndicators = RSI(5), 5 SMA
Timeframe = 5 hrs to 1 day.Buy signal = If price crosses above SMA .and moves significantly above SMA then check RSI(5). If RSI is above 50 then it is a buy signal.
Sell signal = If price crosses below the SMA and moves significantly downwards then if RSI is less then 50, it is a sell signal.
No fixed TP or SL. When u see trend is changing then exit.
If timeframe used is 5hrs to 1 day then avg trade duration will most probably be more than 2 weeks. It is a longterm style trading strategy. right?
The good or ill of a man lies within his own will. – Epictetus
If timeframe used is 5hrs to 1 day then avg trade duration will most probably be more than 2 weeks. It is a longterm style trading strategy. right?
I dun think so. with 5 hours timeframe, avg duration can be less than 1 week. 1 day timeframe is most probably to confirm trend in broader view.
Originally posted by Champ
If timeframe used is 5hrs to 1 day then avg trade duration will most probably be more than 2 weeks. It is a longterm style trading strategy. right?
I dun think so. with 5 hours timeframe, avg duration can be less than 1 week. 1 day timeframe is most probably to confirm trend in broader view.
This system is for longterm traders. Average trade duration will be around 2 days. But u can test same strategy on lower timeframe.
Stick to your rules
I have totally opposite style of trading. I check larger timeframes to confirm direction of trend and then move to shorter timeframe to determine entry and exit.
This is indeed very much straight forward system, but we to make sure we figure out things which can be done on demo account, so we have to practice a lot on there and only then we will move forward. I do it all easily which is through OctaFX with their demo contests like cTrader and Champion where one is able to win huge prizes and also get experience for it, so that’s why I find it so attractive and helps with performance.