Question for MA cross system

Hello everybody, I want you to help me for answering an important question for a system.
For a MA cross system we open a new position after MAs cross eachother. This is OK.

But for closing the position which alternatives can we have? And which one is the best?

1. Waiting again for MAs cross.
2.Specifying a target pip and wait for that.
3. ...

Thank you.

As your entry is not better than a coin toss, the only way you can profit from such a strategy is to identify the main trend and pray for its continuation. Don't forget to use a very generous stoploss, otherwise the vagaries of the market will diminish your account faster than you think.

If you really are in doubt just try to answer this simple question: why do you think that choosing 2 numbers for your moving averages and a certain timeframe will offer you a good entry, as long as combining any other 2 with any other timeframe will provide another valid but completely different entry?

With MA crossover, entry will usually be the exact same as exit. Most MA crossover traders wait for the MA to crossover again before exiting the position but it you ever go back and look at historical charts you'll notice by doing that you may loose most of your profits gained because the exit crossover may have headed back towards your entry crossover.

As with any strategy, the trader needs to know when to exit a trade ... so it would be best for you not to use MA crossover for exits. Instead you should set a "target" for the amount of pips you'd like to earn each trade. Twenty - thirty pips would be a more realistic take profit number, if course it all depends on your style of trading.

Stop trading a MA cross system.......

Using the MA crossover alone is really like coin tossing. However this strategy can be very useful if you were to add a few more indicators to help you eliminate false signals.

You can add a ADX indicator. Whenever you see the faster moving average crossing above the slower moving average, you see if you ADX is sloping up or not. If it is, you can then enter a trade and if it is not, you better stay out of that trade.

Although this system sounds very simple but it is possible for you to make money with it in the long run. This is because of the high risk reward ratio that it can produce. If you are able to catch a trend at the beginning, it will be enough to cover quite a number of your losses.

I think you should work to fine tune this strategy if you are really serious about it.