Indicators Used:
Moving Average (SMA, WMA, EMA)
Understanding the Trading Strategy
To get started with this strategy, you'll need to utilize the Moving Average, whether it’s SMA, WMA, or EMA. For our analysis, we’ll focus on the H4 timeframe using the EUR/USD chart.
Finding Buy Signals
- The price must cross the Moving Average from below to above on the chart.
- Close the buy position when the price crosses the Moving Average from above to below.
Identifying Sell Signals
- The price must cross the Moving Average from above to below on the chart.
- Close the sell position when the price crosses the Moving Average from below to above.
Money Management Tips
If your total loss across all trades reaches 100 pips, double the volume of your next trade. Should you again incur a loss of 100 pips with this increased volume, double the lot size once more. Continue this process until you achieve a profit of 50 pips from the larger lot trades. After that, revert to your original trading volume.
For an in-depth exploration of this strategy, check out the 25th issue of the journal here:
http://www.fortrader.ru/ftgate.php?id=0&num=69
Latest Version of the EA:
http://forum.fortrader.ru/index.php?topic=25.0
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