Kiss of MA50

Here's what I got from a friend.

He set up his charts like this:

BB 50, 0.2
SMA 50
RSI(30)
TF 1h

Whenever the price is above SMA 50 "and" RSI(30) -bullish
If price is below SMA 50 and RSI (30) - bearish


This is called the KISS OF MA50, because every time PA reaches 50MA, it is where you'll decide whether to BUY/SELL

TP or SL is set in accordance to the TRENDLINE break.


Good luck!

Comments of your experiences and observations welcome.

Hi there,

the system looks interesting..

I have some question though. Where is the BB (50, 0.2)? I do not see it on the charts - if of course by BB you mean Bolly Bands. And what is its part in the system

Also what do you mean by "RSI being bullish/bearish"? Bellow or above the 50 level or what?

Best regards,

Emil Filipov

P.S. Subscribed

I do have a similar strategy wanna share.

The strategy is using TF(1day), BB(20,2) and SMA(200) as well. (Although I can't see your method is using the BB)
1. PA above SMA bullish; below SMA bearish;
2. In bullish, when PA touch TB(top band) follow the trend entry long; when PA touch BB(bottom band) entry long as a range trader;
3. Vice versa in bearish;
4. when trade the trend, stop loss ratio on 1:1; when trade the rage, stop loss ration on 1:2;

I wrote a program to back test this with past 10 years history data, it makes at least 4000 pips a year.
The good thing is it's using the 1 day TF, so that you don't have to sit in front of the computer every hour.

Perphas, you mean rsi30 above or under 50

spyfrat system.

nice

Looks nice for a trending market. I think you get slaughtered in a ranging market.

Any back test results?

Thanks Kev, but could you clarify how do we know when in a trending or ranging market.
1 - You say 'In bullish, when PA touch TB(top band) follow the trend entry long; when PA touch BB(bottom band) entry long as a range trader', just to clarify: this mean when in a trending market by when price breaks top BB and when in a ranging market buy at bottom BB.
2 - How do we know our target in order to calculate stop loss, with given ratios

I just put some thought into this and i would appreciate any feedback.
My idea of how to curb losses; when a break of BB occurs, where was the daily open
It must be below 2 previous else forget and wait for a reset (maybe 3 daily opens) needs testing!
A reset is for price to close over mid BB and try again.

As per the image
A: Daily open B: second daily open prior to a break of BB
1S: Short entry, note daily open was below 2 previous, of course price below 200 simpleMA
SL and TP not sure yet, i like to use ATR 100 can explain later
Note, price must now reset
2: No entry, as in the image the price broke BB but the daily open was not below 2 previous
3: As with example (2)
4: Price was above 200simpleMA so now waiting a reset

Do not bother with my previous post, did some testing, not worth your while.
However!!!!!

Wait for next post i got something gooood

Are you ready!!!

Okay settings have changed, i just tested EURUSD H4 timeframe for 6 months, looks tit hot
8 wins
4 additional entries
0 losses
cmon son!!

Above are screen shots with entries and notes.

Settings:
200 simpleMA
Bollinger Bands, 30
ATR 100
(ignore other indicators on screen shots, not used in this strategy)

Notes:
chs: change direction to short, means a daily open is below 3 previous
If price is below 200 simpleMA then wait for pullback to mid bollinger to 'reset' and then continue
If crosses BB enter
AD: This is Additional Entry, enter at open of day where CH changes, notice on screen shots AD is where CHS or CHL is found.
How this works is, say you entered short and the bugger turns against you, enter at AD for and close at break even for both trades, you could also increase the trade size of AD to exit both sooner... more on that later.

chs: change direction to long, see chs

Any questions and comments, please someone test other pairs, im busy but will do my part

i may move this to a new thread soon

see this example of an exotic pair how we are safe in a ranging market

In this example as price is well above 200simple MA we are only looking to go LONG
1. when chl occurs after a chs, price must retrace to mid bollinger then cross outer BB, this does not occur and instead
1.1 occurs where chs (lower daily open, below 3 previous occurs) so now wait until
2. a new chl, same as before wait for retrace or 'reset' and again it fails.. but its our parachute! starting new thread soon, whos with me

Hi Verve,

really looks interessting, but unfortunetelly I dont understand your thoughts when to go long and when to go short. But I reall ytry to understand :-)

for what you need the ATR 100? Could you make please a clear buy rule and a sell rule? Thanks

Sell example: Looking at the first image i posted, post 11, eurusd, go to your chart and follow:
step 1: We were looking for longs since price was above 200 simpleMA
However then price trades below
step 2: 'chs' on the 2/3 of jan shows the daily open is now below 3 previous
step 3: so now we are looking to short, but since the change has occured from long setups to short, or chl to chs
we must wait for retracement to mid bollinger, this occurs on 8/9 jan just above first arrow
step 4: price now breaks lower bollinger, so enter SHORT or place order with target (SL is long way away) it will be twice the distance from entry to second entry. So entry would be 1.3560 SELL (see step 5 which has second entry with SL (1.3788))
ATR 100: i use this to help with targets as this various over pairs, seasons, years etc
Take the lower atr number and i use this as target
step 5: this example requires a second trade as target is not reached, instead a chl occurs/ potential change in trend,
where the AD and chl is enter a second short for same trade size as first, then set targets to make no loss, or a win of 50 USD and a loss of 50 USD for example.

ill will post more explanation later, does this help?

To continue, at the first chl on the first image posted (post 11)

we are looking to enter long, since the trend has changed, wait for pullback to mid bollinger.
As this occurs notice the trend fails and instead a change occurs to chs (this is where the daily opening is below 3 previous)
Wait for pullback to mid bollinger (15/16 jan) and then where the arrow is, enter short manual or with order when price breaks lower bollinger.
Use ATR 100 for target approximately 27 pips. Target reached.

Later i will explain how to recover from a loss.. in short, double up on original trade size with next entry.

Thank you Verve. I understand now better. But a few questions I have:

step 4 you said: "price now breaks lower bollinger, so enter long or place order with target"

but I thought we looking now only for sell posibilitys. But you said we enter long? Maybe you want to write sell isnt it?

So if I understood right, you had first a sell at the bottom of the Bollinger Bands at 9.Jan, 9:00 am? Then a second sell at chl?

What is if price would go further up?

Do you have sl?

Thanks, i edited and yes it is a sell, my mistake.
I also edited above with Stop Loss, which would be twice the distance.
We will discuss, second entries in new thread... will start tomorrow.
So if we make a loss of say 80 USD
Next entry we will double trade size and make app 85 USD

just testing you, haha thanks kley
Guess what we can also use this with 4hr pivot/ open prices using m30
just finalizing indicators
trust this all goes to plan.. starting thread soon, as ive sorta hijacked this one