I opened up a 30 day demo account for the Metatrader platform. In this experiment I have made my screen all one color and I am going to trade off of the 10 and 21 Smoothed Moving Average Close only.
In my other accounts I use other methods, but I only want to see the results and reliability of MA crosses. So here are the rules so far...
1. The timeframes will be either 1 hr, 4 hr or the daily. I am going to school full time so I have to take what I can get.
2. Stop losses will be set at the top/bottom of the 10 MA.
3. Take profits still have to be determined, but right now I am thinking of 20 pips or 50 pips. Another possibility is to set the TP at the 55, 100 or 200 but I don't know yet.
4. I use the 200 MA for an indication of the direction of the trend, I don't believe too much in "counter-trend" and I will set my TP according to the direction of the 10/21 and 200. For example, if the 200 is trending up (price average increasing) and the 10/21 cross down, I probably will keep the TP small, and vice versa.
5. Too many people get trapped in the mindset in that they have a rigid TP level. I prefer to keep my pips, thank you very much.
6. I will post the trades on here and the results when I take the trade, time permitting.
7. Most trades will probably be on the 1 hr without regards to the 4 hr and daily.
8. I am not interested in anyone's negative comments. THIS IS AN EXPERIMENT TO SATISFY MY CURIOSITY.
9. My demo account has $5 million, but lot sizes will be limited to 1 lot per trade. I use leverage only to increase my margin "cushion", NOT TO INCREASE POSITION SIZES. To do otherwise is just foolish, and a fool and his money are soon parted.
10. I will probably only trade the aud/usd, eur/usd, gbp/usd and the aud/jpy, eur/jpy, and gbp/jpy pairs.
11. I will set this account up on myfxbook as soon as I can.
12. I may add rules
13. I don't know how to post screenshots, so if anyone knows how, please let me know.
A lot of people say MA's don't have predictive power, but I think they do. You only have to be patient and watch and wait for the setup. Another poster remarked that price goes too far from the 100 and 200 day MA's but I argue that price does eventually come back, hence the word "average". Markets overshoot all the time.
In my other accounts I use other methods, but I only want to see the results and reliability of MA crosses. So here are the rules so far...
1. The timeframes will be either 1 hr, 4 hr or the daily. I am going to school full time so I have to take what I can get.
2. Stop losses will be set at the top/bottom of the 10 MA.
3. Take profits still have to be determined, but right now I am thinking of 20 pips or 50 pips. Another possibility is to set the TP at the 55, 100 or 200 but I don't know yet.
4. I use the 200 MA for an indication of the direction of the trend, I don't believe too much in "counter-trend" and I will set my TP according to the direction of the 10/21 and 200. For example, if the 200 is trending up (price average increasing) and the 10/21 cross down, I probably will keep the TP small, and vice versa.
5. Too many people get trapped in the mindset in that they have a rigid TP level. I prefer to keep my pips, thank you very much.
6. I will post the trades on here and the results when I take the trade, time permitting.
7. Most trades will probably be on the 1 hr without regards to the 4 hr and daily.
8. I am not interested in anyone's negative comments. THIS IS AN EXPERIMENT TO SATISFY MY CURIOSITY.
9. My demo account has $5 million, but lot sizes will be limited to 1 lot per trade. I use leverage only to increase my margin "cushion", NOT TO INCREASE POSITION SIZES. To do otherwise is just foolish, and a fool and his money are soon parted.
10. I will probably only trade the aud/usd, eur/usd, gbp/usd and the aud/jpy, eur/jpy, and gbp/jpy pairs.
11. I will set this account up on myfxbook as soon as I can.
12. I may add rules
13. I don't know how to post screenshots, so if anyone knows how, please let me know.
A lot of people say MA's don't have predictive power, but I think they do. You only have to be patient and watch and wait for the setup. Another poster remarked that price goes too far from the 100 and 200 day MA's but I argue that price does eventually come back, hence the word "average". Markets overshoot all the time.