Welcome back, traders! Today, we’re diving into the latest version of the EMA_WMA trading system.
The new and improved version 2 comes with a handy position trailing function that can really enhance your trading strategy.
This system operates using two key indicators: the WMA (Weighted Moving Average) set to 8 periods and the EMA (Exponential Moving Average) set to 28 periods.
- When the WMA crosses above the EMA, it's time to consider opening a long position.
- Conversely, when the WMA crosses below the EMA, you’ll want to look for a short opportunity.
Once you've opened a position, remember to set your orders with a Take Profit set at 50 pips (from the opening price) and a Stop Loss also at 50 pips (from the opening price plus the spread).
Pro Tips for Trading with EMA_WMA v2
- Stick to a fixed deposit size—aim for 10% with a leverage of (1:100) for optimal risk management.
- This system isn’t a one-size-fits-all; it doesn’t work well with every currency pair, so choose wisely!
- If the trend reverses and the WMA crosses the EMA in the opposite direction of your current position, it’s time to switch gears. Close your existing trade and open a new one in the direction of the trend. Just make sure to delete the old orders before placing the new ones.
Input Values Explained
- EMA: averaging period - This sets the EMA parameter.
- WMA: averaging period - This sets the WMA parameter.
- StopLoss - Define your stop loss value here.
- TakeProfit - Set your take profit value here.
- Trailing Stop - Specify your trailing stop value.
- Trailing Step - This value dictates your trailing step.
- Risk - This value determines your position sizing based on risk.
Happy trading, and may your pips be plenty!
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