Simple Moving Average Crossover risked 100 TIMES to find the REAL WIN RATE ? SMA Trading Strategies

Published on February 10, 2021

New guide about Forex Online Trading, Best Forex Technical Analysis, Forex Trading Robot, Forex Market, and Sma Trading Strategy, Simple Moving Average Crossover risked 100 TIMES to find the REAL WIN RATE ? SMA Trading Strategies.

How to use the Simple Moving Average Crossover Strategy in Forex and Stock Market Trading and what’s the real win rate of this SMA strategy? Lets find out.
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What’s the real win rate of the Simple Moving Average Crossover strategy? I have already tested the Exponential moving average strategy 100 times to find its real win rate. Well, in this video, why don’t we test the Simple Moving Average Trading Strategy 100 times, to find its real win rate. I have tested many different trading strategies on the Trading Rush channel, if you are a new to trading, watch them. And don’t forget to subscribe to the Trading Rush channel, and ring that notification bell. After all, you don’t want to risk your money on a strategy that doesn’t even work.

The Simple Moving Average Trading Strategy consists of 2 or more simple moving averages. All the moving averages used, have different input lengths. But the most common simple moving strategy, is the 9 and 21 period moving average strategy. In this strategy, a trader uses the crossover of the moving averages, to find entry and exit signals. Since simple moving average smooths out price data, you can gather a lot of info about the price direction. With the help of a simple moving average, even your dog can identify if the price is trending upwards, downwards, or is in a range. But if you combine two simple moving averages that smooths out price data, you can create a simple but effective trading system.

Here’s how the SMA crossover strategy goes. When the 9 period SMA, crosses above the 21 period SMA, it’s a buy signal.

Similarly, if the 9 period SMA, crosses below the 21 period SMA, it’s a sell signal.

Here, the 9 period simple moving average, is the fast moving average. And the 21 period SMA, is the slow moving average.

Now, if you take trades using this SMA crossover setup, where should you put your stoploss?

Well, in the long setup, when the 9 SMA crosses above 21 SMA, you can set your stoploss just below the swing low.

Similarly, in a short setup, when the 9 SMA crosses below the 21 period SMA, you can set your stoploss below the swing high.

Now, you can trade using this simple setup, but it’s not very effective, and I don’t recommend it, here’s why.

You see, if you can find where price wants to go in the long run, your job is half done. If you can identify where the price is trending in the long term, you are one step closer to making good money in trading. That’s because, when price is in a trend, it tends to move in one direction for a long time. If you take trade in the direction of the long term trend, you can achieve higher and better reward to risk ratios. In simple words, you will make more money. And you can easily find that direction of the long term trend, using another moving average. Usually, I use 200 Exponential moving average to find the long term trend. But this time, since the topic is about simple moving averages, I have used 200 period simple moving average to find the long term trend direction.

If price is above the 200 SMA, it’s an uptrend, and we should only look to buy. If price is below it, it’s a downtrend, and we should only look to sell.

So here’s how our complete modified Simple Moving Average Crossover strategy goes.

Only take buy entry signals, when 9 period SMA, crosses above 21 period SMA, and price is above the 200 period Simple Moving Average.

Similarly, only take sell signals, when 9 period SMA, crosses below the 21 period SMA, and price is still below the 200 period simple moving average.

I have tested this Simple Moving Average Crossover setup 100 times, with just few simple tweaks. These tweaks are there to make the strategy more effective in the long run.
 
When the crossover strategy gives a buy entry signal, the candle that is giving the entry signal, should be above the moving averages. If it is slightly touching it, it’s still a valid setup. Furthermore, the  entry candle has to be above all 3 moving averages.

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In lots of circumstances we can, however ONLY if the volume boosts. The very best method to make money is buying and selling breakouts. You want the bigger price at the end of the trade.

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That’s because over that time, the market may lose 80% in value like it carried out in Japan in the 90s. And yes, sometimes I do trade even without all this things explained above. Some individuals wish to make trading so tough.

Occasionally the technical indications start making news. Whether it’s the VIX, or a moving average, somebody chooses up the story and quickly it’s on CNBC or Bloomberg as the news of the day. So, as an investor one has to ask, “are technical indications actually a reason to buy or offer?” In some aspects the answer is no, considering that “investing” is something various from swing trading or day trading.

This environment would indicate that the currency pair’s price is trending up or down and breaking out of its present trading variety. When there are modifications impacting the currency’s nation, this generally happens. When the price of the currency pair rises listed below or above the 21 Exponential Moving Typical and then going back to it, a quick trending day can be seen. A Moving Average Trader should study the fundamentals of the country before deciding how to trade next.

Grooved variety can likewise hold. If the selling is extreme, it may press the stock right past the grooved location – the longer a stock remains at a level, the more powerful the support.

OIH significant support is at the (rising) 50 day MA, currently simply over 108. However, if OIH closes below the 50 day MA, then next Forex MA Trading support is around 105, i.e. the longer Price-by-Volume bar. Around 105 may be the bottom of the consolidation zone, while a correction might result somewhere in the 90s or 80s. The short-term price of oil is largely based on the rate of international financial growth, shown in monthly economic data, and supply disturbances, including geopolitical occasions and typhoons in the Gulf.

Your job is simply to find out direction. When the bands tosses off this signal you must identify instructions because Bollinger bands won’t inform you that. Since we had actually a stopped working higher swing low, we identified Stocks MA Trading direction. To put it simply broken swing low assistance, and after that damaged assistance of our 10 period EMA. Couple that with the growth of the bands and you end up with a trade that paid nearly $8,000 dollars with threat kept to an outright minimum.

In addition, if the five day moving average is pointing down then keep away, think about an extra product, one where by the 5-day moving average is moving north. And do not buy a trade stock when it really is down below its two-hundred day moving average.

It has been rather a couple of weeks of drawback volatility. The rate has actually dropped some $70 from the peak of the last run to $990. The green line depicts the significant fight area for $1,000. While it is $990 instead of $1,000 it does represent that turning point. For that reason we have had our second test of the $1,000 according to this chart.

18 bar moving average takes the existing session on open high low close and compares that to the open high low close of 18 days ago, then smooths the typical and puts it into a line on the chart to provide us a pattern of the present market conditions. Breaks above it are bullish and breaks listed below it are bearish.

After all, too many indicators can result in choice paralysis. The technical analysis needs to also be figured out by the Forex trader. Support-this term describes the bottom of a stock’s trading variety.

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