Hello all,
when I just started trading I wanted to over-complicate things. So I turned back to simplicity and here is a very simple trading system. The idea is to search for the "real deal" - catch the trend and filter flat movement.
Ingredients:
when I just started trading I wanted to over-complicate things. So I turned back to simplicity and here is a very simple trading system. The idea is to search for the "real deal" - catch the trend and filter flat movement.
Ingredients:
- EUR/USD 1h chart (well, I just like it that way. No special reason for that)
- SMA 90
- EMA 10
- RSI 14 (yup, all that standard)
Buy signal:
if EMA 10 crosses SMA 90 from below
AND RSI 14 is close to overbought level
TP 200, SL 100
Sell signal:
- if EMA 10 crosses SMA 90 from above
- AND RSI is close to oversold level
TP 200, SL 100
See the attached document. I have coded it in Java for duka jforex platform to backtest. The results were quite ok. I had patience to download tick data for last 6 months. You will see quotes from the report in the end of this post.
The question to you, fellow traders is - how do you think it is possible to make this thing work better? Filter is not that effective as I would like. I have also not thought about opening extra positions if the trend sustains and the lines have not crossed again. Would you maybe suggest me something?
http://i.imgur.com/V7K61.jpg
Attached Image (click to enlarge)
Attached File(s)
