NSK's Easy Swing Trading

ok, but the number of trades is pretty less (no fault of the strategy)....which means that the sample size is very less...

yes that certainly is a downside to testing longer term strategies. We cannot obtain enough time series data for a statistically significant test.

yes indeed....how does the same show up in GBPUSD?

did not work well on GBPUSD, too choppy of a pair for that strategy

i see...interesting....

going through all your past post,do you still trade with your BV system.Been using vsa on and off never could get my head around it.Thanks

When do you intend to tell us about your strategy, trading moving average crosses only can prove to be quite risky, especially during consolidation and ranging market periods.

Abi

these MA´s These are very good in the long term ... I had a demo platform for some time and are spoiling .... never failed

but it was very long term ... in d1 with trendlines and ma's

ahh .... very important angle and zoom to a minimum

look e-u history for example

sorry been a bit busy...will start discussing again sometime today/tmrw....havent updated my blog as well...so little time, so much to do...

i actually trade with a mix of strategies....as u get more and more experience in trading, its a lot more of knowledge and intuition trading, drawn on experience

Now that the strategy has been revealed to be easy, simple and straightforward (just 50 SMA and 100 SMA crossing over), lets see how to trade it....There are various ways of trading it by the way i trade it is that i always look to take trades in the direction of the trend. I see that after the cross over, euro is going to go up. Thats the conclusion that i make cos i trust my system fully. I know that there is a whole lot of negative news swirling around about the euro but i just trust my system, nothing else. If my system hits SL and takes me out of the trade, thats fine. I will still take the next trade according to my system.

So, my system asks me to go long on the euro. Since the system is based on daily timeframe, the stop loss on any trade would be a minimum of 200 pips to a maximum of 300 pips and i will be looking to add a maximum of 4 positions, all in the direction of the trade. So, the way i do it is, switch to the hourly chart, find a good support region, wait for the euro to reach there, take the first 1/4 position. If the support is strong and i can afford to have a smaller SL than 200 pips, then i take more than 1/4 position. This kind of trading is all about lot sizing/money management. If i am convinced of the trend, i will go in with small lots and bigger SLs and continue to add position as the price falls, all within my money management strategy. I will never choose to risk more than 0.5% of my balance on any trade and so i plan my lot sizes, entry positions and SLs accordingly.

For eg., in the most recent case, i would see that 1.3050 was a very good support region which was not properly broken for several days. So, i entered a large long position on the euro with SL as 1.3000 cos i know that if 1.3050 is convincingly broken, it would start falling down a lot. So, my SL was just 50 pips and my target is the next resistance region on the hourly chart which is at 1.3190. I choose to either exit fully there or a part of my position there depending on PA. Most of the time, it will be only part of the position. I would also be looking to load on my new longs at small support regions like 1.3130. As long as i am convinced of the uptrend, i will continue to load longs at each and every support region on the hourly and will choose to exit part of these longs at each and every resistance region. All within strict money management rules.

There is a lot more intricacies to this trading but basically the idea is to trade in the direction of the trend with good money management. So, i will always have a few positions open of varying sizes and will keep taking profits at all the correct points. So, i will have profits in the bank, some negative positions and some positibe positions but all of them will be within the right money management rules and sum of the positions will never cross 0.5% of the balance, as far as a single pair is concerned.

euro may continue to range until 1.32 is broken convincingly...

Not a bad strategy mate, just one question, you mentioned your money management strategy is that you don't risk more than 0.5% of your capital, do you mean that for each trade you make or do you not mind taking in more and more risk as the trade progresses

Also do you only use this strategy on the majors or do you trade crosses too

Why are you going long on the EURUSD as per your system the lasting moving average cross was on the downside on the daily chart...please clarify

thanks for asking....my plan is 0.5% for the entire trade...thats the max risk always and i size each smaller trade accordingly...might enter 0.25% of the planned trade if SL is 200 pips...if price goes against me by 50 pips, i enter the other 0.25%...like that...idea is to stay in the direction of the trend until proven wrong...

attached is the chart from 2 days back...50 SMA has crossed the 100 in the upward direction....so, to me, trend is up and thats why i am long....

swing trading is all abt trading using the daily, weekly and monthly charts as well...they present as clear a picture as can be and they can be trusted as well...none of the big boys, those at hedge funds and banks trade with a view of taking profits today/tmrw or day after...they have a time horizon of atleast 6 mnths with which they trade in.....u need to be on their side or u r fighting a losing battle...and what they do is not seen on 1HR or 15M timeframes...

I apologize, I was looking at the 100 and the 200 ema, is there any special reason why you use the sma as opposed to the ema?

Once again I apologize for the misunderstanding.

thats ok...everyone makes mistakes....i use SMAs cos most of the traders, esp. the bigger ones use SMAs.....as i said, i always try to be on the side of the trend and hence the bigger traders....if u can exactly mimic what they do, u have a winner.....i cannot eactly mimic what they do cos i dont know what exactly they all do but with whatever information that i have, i try and match my strategy to theirs...

Thanks, keeping an eye on this chart, lets see where it goes, fundamentals on Eur seem pretty dim at the moment.