MA-based trading Idea

I was looking on my charts with an MA on it and observed(nothing new) that the price is always crossing the MA (UP/DOWN,DOWN/UP)

So when I have buyed like on the image below and the price goes under the MA I have to menage my trade(positions) so that the averege of the positions have to stay onder the MA because then on the next cross I can exit my positions on BE or even with a profit...

Is this something that we could build an exit strategy on it?

The MA on the H1 picture is 10 and the MA on the M1 is 600

You found the oldiest strategy in trading !!!

Just use the FF search feature and you will find hundreds EAs trading this strategy.

Ok but I'm wondering what are the posibilities to keep my position onder or above an MA
I can open every 5 pip a position when it's goes agains me but then after some trades i gonna be to havy in the market. Is there some way that I could optimize this ?

You have to check this back on chart ... But I would highly suggest to not use intensive grid.

Instead of adding positions because your entry was wrong. You should concentrate on finding better entries.

Recovery shouldn't be a reason for enter a position. Recovery isn't trading ...

perhaps I'm wrong but for me grid is something static and I'm traying to find a way to make it dynamic.
My first criteria would be to choose only one side long or short then check it with an EA and see if on the same period of time( bigger that 1 year ) i can archive same results..

Doesn't matter ... What you are trying to do is recovery.

But is this true:

Recovery (short term) = building a position (long term)

!!!and I don't wonna be smarter than you!!!

I am not claiming to be smart !

What I am trying to explain is that generally in trading an entry is based on a signal given by your analysis of the market. Any other reason (revenge, recovery, averaging, etc ...) isn't valid in my opinion because your decision is mostly driven by your emotions.

Mathematically speaking, yes there is: Not doing it at all!

In your 2nd chart the very best possible 2nd entry would have been right at the lowest price. There is no better set of positions (smaller cummulated lot size) which could average the price to the MA.

In order to make the MA be your BE point at the crossing, this 2nd entry should have been 5 times bigger than the first one! You would have been over-leveraged 6 times beyond your original MM in order to expect/beg/pray for a net profit of... ZERO!

Here you were at a floating loss of ~100 pips. Let's imagine you open this 5 times bigger position but instead of returning to the MA the price keeps on falling. On Thursday E/U dropped 240 pips. In such a situation you'd be 240+140*6=1080 pips in the red. Just to hope for a 0 pip profit. All of this in oder to avoid a loss of 20 pips. Your risk would have been 500+ times bigger than the avoided loss.

Ok to get out on the touch of the MA has no sense perhaps staying longer til we go obove the MA. I gonna do some backtest on this..

Backtest AUDUSD(01-01-2013 to 12-11-2013) EA opens only long positions

It's looking not so bad but still this big drown down can wipe my account..

Backtest AUDUSD(01-01-2013 to 12-11-2013) EA opens only short positions (same story on the shorts)

Gollum, just an idea: why don't you use the old Stochastic to identify your exits or maybe your entries?
If trend is up and price cut the MA above check the Stoch. If it is oversold dive in and exit when it hits overbought. Same for downtrend: price crosses MA below and Stoch in overbought. Exit when Stoch hits oversold. This is probably the oldest strategy but works..

As FerruFX well said, don't try revenge the market... you will be kicked off.

Also you can use the RR as reference for your BE. if you use RR 1:2 use the same value of your stop loss as BE.

@mmforexinfo
When the stoch. or RSI etc. Is in the overbought it does not mean that I have to sell it is also an indication that there are many buy transactions and when the indi goes in to the oversold this is also not only an buy signal but an idication that many traders are selling..the trick is to choose the right indication...

Gollum if you spend some time and look the charts you will see that the Stoch in 90% of the time show us what is the situation of what the trades are thinking.
I know OB and OS can be longer but it normally represent some price correction. I have been using strategies where the Stochastic is my compass for entries. I don't use Stoch for exits but RR. Even when using Ichimoku I use Stoch.
I just suggest it to make the entry decision a bit easy. I think you are confusing one thing: OB in general does not mean there are a lot of buy transactions but the buying fever are exhausting so there will be a price correction which could lead to a complete reversal or just a correction and back to the main trend. The same works for OS.
The right indication is to wait until the Stochastic starts moving to the same direction of the trend. Also just for curiosity the Stoch Signal angle represents how strong will be the correction.

Discipline and focus.

Have a great trading week.

mmforexinfo

What numbers are you using for the stoch?
15,5,5 slow, fast
5,3,3 ??

Refering to my last post over the indication of buy/dell transactions

When you put on the chart SMA with period of 5. Then you put a stoch with 5,3,3 and a line 50 . The 50 line on the stoch gonna act like the SMA on the main chart, when price cross MA the stoch gonna cross the 50 line...

And now we can see on the chart:

1. stoch is in the oversold but price is near MA indication that not many sell transactions are placed (weak move)
2. stoch is in the overbought but price is near MA indication that not many buy transactions are placed (weak move)
3. stoch is in the oversold and prace is far from MA indication that many sell transactions are placed ( strong move)

The trick is to define the strong move and go with it...

Your point 3 is not a strong move ... but was a strong move.

The deal is to understand the price movement and to define where it is likely going to make a strong move (as per your example).

Perhaps can someone give me the best way to compare point 1. and point 3. or cut this two point to smaller pieces so that it's gonna be easy to spot where is the diference.(I have put this also on the 1m chart but its still not so clear..) Because we have almost the same signals with the stoch but diferent outcomes on the price charts..