Trend Trading - 50 x 200

Hello traders,
I would like to share a system that I have been developing the last few weeks. Been doing some manual backtest and so far is looking pretty good.

RULES FOR POSTING ON THIS THREAD (must read beore posting)

- Don´t add any new indicator.
- Any chart you want to post do it using my template.
- No negative and bad behavior.
- No discussing about an EA
- Not following the rules will result on a BAN.

Let´s enjoy and have fun! I don´t have any interest in selling system or signals.




Indicators: We use 02 simple moving averages for entering, and ATR (14) period for profit taking.

BUY SIGNAL: We wait for the 50SMA close above the 200SMA. We don´t take the trade right away because that will lead to whispaws and losing money. We have to wait for a confirmation that the trend is strong and going up. The way to do that is by looking at 3 things:

- 50SMA pointing up at least in a 45 degree angle
- 50 SMA separating from the 200SMA. You should have at least 5-7 candles of constant separation movement after the moving averages cross.
- Price above the 50SMA

* The opposite for SELL TRADES.

Here is an example. 50sma crossed up the 200sma. After the cross you have at least 5-7 candles when the lines keep separating. And also the angle of 50sma looking very good.



Take profit: 1.5 times the ATR. I have been experimenting with different setups, and you can go from 1 to 2 times the ATR. It depends on your trading style.
Stop loss: I recommend 3 times the ATR or a support or resistance point such as 50 or 200sma




It works on any timeframe.and on any pair. I will be trading it using the 4h chart, beacuse it gives very good and realiable signals and I don´t want to spend all day in front of my computer. I am opening a demo account with USD 1,000 to test this strategy and will be using 0.03 lot size. Will share TradeExplorer as soon as I have it, in case you wanna follow my progress.

At the moment I am looking at CADCHF, looking good. If moving average keeps separating I will probably enter a position. Let´s see how it performs in the next couple of hours:




TEMPLATE:

FEEL FREE TO ASK ANY QUESTIONS!!

Another example, this time for a SELL SIGNAL

Also looking at gbpnzd. When both moving averages come very close but don´t touch, I consider that a cross, so I start looking for entry signals too. IN this case 50sma moving down , also 200sma moving down, which is a VERY STRONG SIGNAL of continuation trernd.

Took GBPNZD short. Entry 1.9230. TP at 1.4180 (using 1 times ATR as tp)

Check the numbers, maybe 1.9180 ?

If you can, open a demo account and set up as Trade Explorer for more interesting thread

Thanks for sharing, I have the 200 EMA on chart, so I will add the 50 and see if I can catch a few

Hi, thanks for answering. I have created a trade explorer with the demo account. You can follow me there now

Actually the numbers are correct. And also took CAD CHF. So at the moment:

Following closely USDCAD too:

CADHCHF TP reached: +17 pips. Good start!

Very good, but I think after waiting patiently for very long MA's to cross, you are cutting the profits short

I know you said no more indicator, but here is one that gives the readout of the ATR(14)

It can also multiple it by user setting, eg. 2 for 2 times

In this example of the CADCHF, 2 times is 38 pips, at this point in time at least

Good luck

Thanks for the indi
You can use any size of TP you want.. But increasing it will result in a reduction of your win/loss ratio. I prefer to take quick profits, is just my style.

Cheers

Okay, here you go, try it out

Thanks

Hi Cocolizo67,

Have you tried your setup on commodities or stocks? If yes, did give you good results similar to forex pairs?

Thanks in advance,

How do I use the ADR and ATR in connection with the 50 and 200 sma. Also do the arrow on your chart signify a trend direction?

Hello, Just use ATR to set TP and SL
The arrow in the chart meanse the place I took trades.

Here is a dashboard to keep track of crossovers as per user settings, find it by name in the Market for FREE

Oops, I keep using EMA and you like SMA

Hello Erebus
Is this dashboard somewhere in FF? I did not manage to find it.
Could you post it here if you dont mind.

what TF is it best/ accurate to use your indi?
im backtesting it with EU H1 and turned out no signal found.

You can't find it on FF, as I didn't mention it was on FF -----> I said find it in the MARKET

I cannot post it here - you need to learn to use Metatrader

Good thing, I am on a mission to educate people to use Metatrader

First, do you remember signing up for MQL Community when you opened Metatrader?

Got to Tools - Options - Community to sign in, or register

Now you can go to the MARKET tab, which I did mention in that post, please check it

At the dropdown, select FREE, and Search for Moving Average Crossover

You should see as per the pictures below, except also you should have the Download button

Click that and it will install, very easy.

Now, anytime you need indicator, try the Market tab, and also the Codebase tab, you will find everything you need

In the Codebase, right click to Download. Best thing they all work, unlike shared indicator on FF

Also, you can search for all the exact same indicators on the website and read about them ---> https://www.mql5.com/

Good Luck, be sure to Like, Comment, Share and Subscribe

[quote=Erebus;11407609]{quote} You can't find it on FF, as I didn't mention it was on FF -----> I said find it in the MARKET I cannot post it here - you need to learn to use Metatrader Good thing, I am on a mission to educate people to use

Great thank you mission accomplished

At the moment looking at EURAUD, which is about to cross.