5 sma simple scheme

Hi,

here's my extremely simple trading scheme, still in backtesting, of course, but still i would like to share it with You and to get some feedback and suggestions.

So here's the setup:

Daily chart

10 day SMA, applied to the high, green
20 day SMA, applied to the low, green

10 day SMA, applied to the low, red
20 day SMA, applied to the high, red

5 day SMA, applied to the close, yellow

Go long when the red lines are between the green lines and the yellow line is above the upper green line

Go short when green lines are between the red lines and the yellow line is below the lower red line

Exit when the conditions fail to exist

Should look like on the screenshot: http://turm0il.planet.ee/chrt.GIF

So please, let me know what You think.... And also, where would You place the stops/targets, considering its a daily system? And when exactly in Your opinion would be the best time in day to check on the positions? I was thinking right before the London open. Any suggestions?

Best wishes, Trippie

This is what I get for the pic.

Warning: fopen(attach/6/9/1/1/7/111719.attach) [function.fopen]: failed to open stream: No such file or directory in /attachment.php on line 217
GIF89a─ююю!Ы,D;

Also, I CAN code this for you(for people to see I am a real programmer...I'm not gonna mention any names *cough* mladen *cough*!!!

I set this up and I from what I can see this is a really great chart set up that helps pinpoint steep-angle trends and weed out weaker trends.

Also when the MA turn chaotic and the yellow MA goes inside the green and red MAs, it allows you to filter out non-trending markets.

This is a gem and has far greater potential than many of the popular threads on FF. Hopefully there'll be interest building soon. It's far from fully developed and it can use some systematic rules to form a real trading system.

Interesting system

Thank you for share with us

I agree with you it interesting system

It does look interesting, I'm going to try this out tomorrow on shorter timeframes to see if it helps to filter out the whipsaws in trading ranges which are the bain of most MA crossover systems

Andy