Profitable trend strategy: paired moving averages (MA) + MT4 template

This is a trending strategy and has simple rules for managing risk and capital, so I advise you to study this strategy in more detail and keep it in your portfolio. The strategy works on all timeframes, for this you need to choose the moving averages according to your needs or temperament: aggressive or passive settings of moving averages. The strategy has clear rules for setting stop loss / lock.

If you don’t have time to constantly sit at your computer or constantly get your phone out to monitor the state of the market, then this strategy is right for you!

(more…)

How to test and collect strategy or signal statistics

If you do not know how you trade (how successful or unsuccessful), then you will not be able to earn in the financial market. Before you start trading, you need to study your strategy. / Signal far and wide.

Statistics is needed to solve several problems:

  • Psychology: reduce psychological stress. When you know that when testing the signal turned out to be cost-effective over a longer period of time, the losses incurred have a smaller impact on the psyche. This knowledge kills nervousness and gives confidence to enter without emotion (fear, loss of opportunity, fear of under-working, etc.)
  • Profitability: get knowledge about your signal and check it for profitability (it gives profit or loss), as well as how long it takes to get a profit (dring month or two or more)

By collecting at least this information, you can already have a complete picture about profitability of the signal used.

(more…)

2 golden rules to become a permanently profitable trader

There are only two golden rules to become a stable earning and profitable trader:

  1. Risk management
  2. Money Management

No other strategy/tactics will give you profit to your deposit. My experience shows that no any strategy found on the internet, offers risk management within. Basically they offer martingale money management strategy, where stop-loss is not used at all. In other words, if you take a random strategy or a signal from the Internet and use it together with the right risk management, the trading will be profitable.

You need to focus on the process, not on the result. Money will come when the process of finding an entry and calculating risk will be more important than earning money or beautiful charts or 95% of profitable trades. To learn to think by probabilities mean to use the opportunity to enter “here and now”, otherwise in a minute there will be an opportunity that has already gone.

I advise you to take it immediately for an axiom: no one can predict price behavior in the market. Each trade can be both: profitable and unprofitable before entering market. This means that you need to make a decision in total uncertainty.

(more…)

Profitable strategy MACD + Stochastic

The stochastic oscillator and the moving average convergence divergence (MACD) are two indicators that work well together.

The stochastic oscillator compares a stock’s closing price to its price range over a period of time. Its K line indicates the number of time periods, and its D line is the moving average of the K line. When the K line drops below 20, the stock is oversold, and it indicates a buying signal. If the K peaks just below 100 then retreats, the stock should be sold before the value drops below 80. And generally, when the K value rises above the D, it’s a buy signal as long as the values are below 80. If they are higher than 80, the security is overbought.

MACD indicates price trends and direction. Subtract a security’s 26-day exponential moving average from its 12-day moving average to create an oscillating indicator value. The trigger line is the nine-day EMA.

If MACD value is higher than the nine-day EMA, it’s a bullish moving average crossover. A bullish signal occurs when a faster moving average crosses above a slower moving average, creating market momentum and signaling more price increases.

(more…)