Am I getting it wrong ???

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Protegex

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Hi, I am fairly new to trading FX via the oanda FX Game platform. Everytime I do a trade it turn against me most of the time. I wonder if I am trading the right way.

My setup is

8 SMA and 50 SMA Buy if its trading above and short if trading below :)

Anyone have any idea to fine tune this ????:sleep:
 
fade your method, when emas cross over it's often a good time to fade for a quick gain i've tried a sort of reversion system for them but it's difficult, but a good lot of the time price reverts back fairly quickly
 
Hi john

What I meant is that when the shorter MA crosses the longer MA, I buy and when the shorter MA falls below, I sell.... This method is killing me quickly ....

Hope you have a better advice for me... Thanks everyone...
 
Very simple - your system is terrible.

MA cross systems are awful, most especially in sideways or ranging markets.

Markets move sideways most of the time.

So yes, you are getting it wrong, and will continue to do so until you put some effort into learning how to trade.
 
I did a research paper on moving average crossover systems for one of my undergraduate classes, using a variety of combinations and found that these systems rarely work over time. Short positions based on a short moving average crossing a long moving average from above yielded negative returns, whereas long positions based on short moving averages crossing long moving averages from below yielded very small positive returns. Most of the time, the moving average signals whiplashed one out of the markets - a situation I believe you are experiencing.

You need an edge to maintain consistent profitability in the markets. A system such as this has been used and abused and therefore, cannot be expected to yield any consistent positive returns. However, it may be possible to use this system with another proprietary indicator that provides you an edge.

Amit

Protegex said:
Hi john

What I meant is that when the shorter MA crosses the longer MA, I buy and when the shorter MA falls below, I sell.... This method is killing me quickly ....

Hope you have a better advice for me... Thanks everyone...
Click to expand...
 
you could try and FADE the crossovers in CHOPPY markets...you could use an indicator to help with that, say ADX, or your eyes
 
Its possible to be profitable with a poor system, as long as it gives you a slight statistical edge (e.g. 51 winners out of every 100) but your money management must be very strong. Good money management will ensure you don't get wiped out if your 49 losers all come in a sequence before your 51 winners.

Don't use a system until you have backtested it over 100 trades. If you would not be profitable (in pips, not just % of winners against losers), don't even put on one trade with that system. Refine it, backtest again, refine it again, backetest it again. Then practice with tiny amounts of real capital. Make sure you know what the market will (probably) do and what you (definitely) will do about it.

Think about the hours of practice a concert pianist puts in for the sake of a 2 hour performance. he doesn't start to prasctice live on stage.
 
plan to spend at least the next 5 years learning the market.. guaranteed you going to go though more losses than you can throw a stick at. but what ever you do,dont throw real money at it until you have at least a 6 months to a years consistent profits and a growing demo account. the first thing you need to do is learn patience and be able to take losses properly. work through techniques giving them at least 25 trades each while you assess their pro's and cons. good luck
 
Wow this forum is fabulous... Thanks to all those that have replied... Will try out those methods and come back... Thank you...:)
 
Your system is not good, but you aren't telling us the whole story.
What money management method do you use, how/where do you exit? Your exit is as much or more important than the entry. Even the best system will fail you if you don't exit properly. You have much to learn so take the time to do it.

Peter
 
Protegex said:
Hi john

What I meant is that when the shorter MA crosses the longer MA, I buy and when the shorter MA falls below, I sell.... This method is killing me quickly ....

Hope you have a better advice for me... Thanks everyone...
Click to expand...

1/ stop trading for now. you're not getting anything but bad experience.
2/ read forkers post
3/ dont worry about it being a 'bad' idea using ma cross as most here seem most concerned with. sure you will get killed in some balanced markets. there is no golden bullet for entry if using tech analysis/indicators. the secret is to learn trade management. learn to identify trades that will wont go your way and get rid of the asap, (you wont always get it right, but dont seek perfection as it dont exist, but try & b as good as you can). learn what the winners behave like after entry in the way it moves. i bet the winners have good momentum/extension immediately. you wont learn this overnight. so paper/demo trade til you do.learn to get a feel for when the moves over.
 
charliechan said:
1/ stop trading for now. you're not getting anything but bad experience.
2/ read forkers post
3/ dont worry about it being a 'bad' idea using ma cross as most here seem most concerned with. sure you will get killed in some balanced markets. there is no golden bullet for entry if using tech analysis/indicators. the secret is to learn trade management. learn to identify trades that will wont go your way and get rid of the asap, (you wont always get it right, but dont seek perfection as it dont exist, but try & b as good as you can). learn what the winners behave like after entry in the way it moves. i bet the winners have good momentum/extension immediately. you wont learn this overnight. so paper/demo trade til you do.learn to get a feel for when the moves over.
Click to expand...

Hi there, thanks for replying. I am curious on what to look out in order to feel when the market move over. Do you have any examples or care to elaborate more on this ? :clap:
 
Tomorton talked about backtesting and practice. Forker, in this post, gave yhou some excellent advice. Don't play for real until you know your system has proven itself beyond any shadow of a doubt.


forker said:
plan to spend at least the next 5 years learning the market.. guaranteed you going to go though more losses than you can throw a stick at. but what ever you do,dont throw real money at it until you have at least a 6 months to a years consistent profits and a growing demo account. the first thing you need to do is learn patience and be able to take losses properly. work through techniques giving them at least 25 trades each while you assess their pro's and cons. good luck
Click to expand...
 
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