Try This Strategy

[teezeike]

Hi,

Just try this if it works for you.
General Setup:
1. 5 min chart SMA 1/20/50
2. Standard Deviation 20

Entry:
1. As soon as price crosses both SMA/20/50 from down LONG
2. As soon as price crosses both SMA/20/50 from up SHORT
3. If After Standard Deviation previous more than 66% and down to less than 33% and Price as (1) then LONG.
4. If After Standard Deviation previous more than 66% and down to less than 33% and Price as (2) then SHORT

Exit:
1.If LONG or SHORT and satndard Deviation >=66% then Exit.
2. Note in Entry1.& 2.) above, if Exit1) fails to occur and Entry1 or 2) occurs the switch.

Stop Loss:
1. Trailing Stop of 4 of .25 from SMA/20/50 price level on entry whichever is lower.

I hope this helps.

Teddy

 

[intercreate]

Which markets have you tried this strategy on? Does it work better in some markets than others?
Have you back tested this method?

 

[lifetrading]

Thank you for the information. BTW, will it be good for high volatility pairs? like EUR/JPY or GBP/JPY? Thanks again.

 

[tigerllc]

Hi,

Just try this if it works for you.
General Setup:
1. 5 min chart SMA 1/20/50
2. Standard Deviation 20

Entry:
1. As soon as price crosses both SMA/20/50 from down LONG
2. As soon as price crosses both SMA/20/50 from up SHORT
3. If After Standard Deviation previous more than 66% and down to less than 33% and Price as (1) then LONG.
4. If After Standard Deviation previous more than 66% and down to less than 33% and Price as (2) then SHORT

Exit:
1.If LONG or SHORT and satndard Deviation >=66% then Exit.
2. Note in Entry1.& 2.) above, if Exit1) fails to occur and Entry1 or 2) occurs the switch.

Stop Loss:
1. Trailing Stop of 4 of .25 from SMA/20/50 price level on entry whichever is lower.

I hope this helps.

Teddy

Teddy:
Rookie here... I know SMA (simple MA), How to draw Standard Deviation of 20 ?? Is this an indicator?? Or bollinger band ??

What's Stop of 4 of .25 ??
have you tried this on EURJPY or GBPJYP ??? IF 5 min is used for scalping..what's typical pips gain ?? I use 1 min chart for scalping for 3,4 -10,12 pips with 20 pip stops.

Thanks,
Jason

 

[tomorton]

MA cross-over strategies can work tolerably well but they are simplistic and can lead to expensive over-trading if you don't use other inputs to filter trades and whipsawing as MAs can frequently braid across price and each other. Also, the MAs lag the market so can lead to entry late in a swing when opportunity has already faded. Can't recommend use of MAs alone as a strategy - like driving with one eye shut - why?
See The Ultimate Trading Guide, Hill, Pruitt & Hill (Wiley)

 

[shadowninja]

To an extent, you're right. MAs for scalping are no good. MAs do however help for swing and position trading.

An example

Shorting on 7th Jan would have resulted in a nice profit.