Forex strategy «Trading on MA» is a fairly simple strategy based on moving averages for the EUR/USD currency pair, interval — H1 (although trading on other pairs is also possible, but you should select the parameters for them yourself)
The strategy was sent by Sergey Gasparyan, and as far as I know, his friend trades according to this strategy and, most importantly, it is profitable (although it is indicator and quite simple), see the trading report at the end of the description.
First of all, we set the following moving averages:
- Exponential average EMA (120) with added levels +10 and -10 (thin gray lines in the figure).
- Same average EMA (10).
Conditions for concluding a deal to buy:
1. The price is above the EMA 120.
2. When approaching and touching it from above, we conclude a deal to buy in the area from 0 to 5 pp (a limit order is possible).
3. Take profit — the nearest maximum.
4. Stop loss is two times less than take profit (it is also possible to use a trailing stop on the lows and touch points of EMA 10).
Conditions for concluding sales transactions:
1. The price is below the EMA 120.
2. When approaching and touching it from below, we conclude a deal to sell in the area from 0 to 5 pp (a limit order is possible).
3. Take profit — the nearest minimum.
4. Stop loss is two times less than take profit (trailing by highs and touch points of EMA 10 is also possible).
Additional conditions and filters of the «Trading on MA» strategy:
- Any crossing and closing by the breakdown of EMA 120 (even one candlestick) gives grounds for closing the deal when returning to the EMA (in the area from 0 to 5 pp) and flipping in the opposite direction.
- If the breakout candle is closed at a distance of 0 to 5 pp, a trade is allowed at the opening price of the next candle (that is, do not wait for a rollback to EMA 120).
- If EMA 10 at the close of the day is in a horizontal position or close to it, as well as in the zone from +10 to -10 (EMA 120), then transactions are not concluded until the exit from this zone.
- The body of the candle approaching the EMA should not exceed 60 points.
- Take profit must be at least 20 pips. Otherwise, the transaction is not opened.
- The minimum stop loss is 15 pips.
- As soon as the price crosses EMA 10, the deal should be transferred to the breakeven level, and if it knocks us out, then to conclude a deal in the same direction, you should already wait for the breakout candle.
- Total profit (in pips) — 1400
- Total profit (sum of all wins (pp)) — 2797
- Total loss (sum of all losses) — 1397
- Maximum drawdown in pips — 171
- Recovery factor — 16.3
- Profit factor (profit to loss ratio) — 2
- Reliable profit factor (excluding the maximum profitable trade) — 1.93
- Minimum deposit — 542
Profitable and losing trades are about 50 to 50, which is a good indicator with a loss / profit ratio of 1 to 2.
Video forex strategy «Trading on MA»:
- Recommended to watch with English subtitles!
- Download template for forex strategy – torgovlya_na_mashkah
- I don’t attach indicators, namely moving averages, as they are in any MT4 terminal by default.