If you place 1,000 consecutive forex trades with a 3 pip spread each, you will lose about 3,000 pips if your system has no trading edge. Now reverse all the buy/sell signals and you will STILL lose about 3,000 pips. That's why more than 90% of ...

What if I reversed all my orders?

There are 3 ways to use the moving average principle: 1: As a stand-alone system, example you buy/sell when the price is above/below its 19 and 39 moving average. 2: As an exit tool, example your long position is profitable but now you want to find ...

Why exactly do EMA crossover systems not work?

Thanks for your comments Hayseed. Or like you say in Russia, spasiba I just want to add one more thing. Your (optimal) exit strategy will of course always depend on the time frame you are using. A trend "reversal" could happen on the 1h time ...

Why exactly do EMA crossover systems not work?

I will give you more details tomorrow if you like Nubcake, right now I am testing a few promising trading ideas of my own. Reading trading books is extremely important, they give the traders a solid foundation upon which to build profitable trading ...

Why exactly do EMA crossover systems not work?

Ok, I found one of the books that shows that a pure random entry point can still make money if we use the right exit and stop. Needless to say, the idea that it is possible to make money even with random buy/sell signals was a true revelation for ...

Why exactly do EMA crossover systems not work?

Oh really? Then give them back all the pips you took from them over all your oh so profitable years

Why exactly do EMA crossover systems not work?

That was precisely my intention. I consider myself a rather patient man (and a trader needs to be patient anyway, and wait quietly for the right trading opportunity) but enough is enough. Thanks for the tip Nubcake.

Why exactly do EMA crossover systems not work?

Custos, just like you I always thought that a good entry point was THE key to trading success. While it is true that a good entry point is important (it allows you to have the smallest stop possible) I can show that your exit point is, by far, much ...

Why exactly do EMA crossover systems not work?

I have absolutely nothing to sell in this forum, we are just here to exchange trading ideas, no more no less. That said, and according to Turveyd, people who do not want to reveal all the details of their trading system (for obvious reasons) are all ...

Why exactly do EMA crossover systems not work?

In other words Turveyd wants me to do his homework for him! Ok, I will give you a little hint about my exit strategy Turveyd. Here it is: What does the price has to do to NECESSARILY end and reverse a trend? Pull those charts, study carefully ...

Why exactly do EMA crossover systems not work?

Trading IS that easy : just capture the trend on its way up/down, exit when the time is right. Minimize your losses when the market is choppy. That's it. Seriously.

Why exactly do EMA crossover systems not work?

Yes, that's the beauty of my exit strategy, its filters out all the noise and all the phony "reversals" that it encounters in its path until it finds the real end of the trend. Spend enough time studying how trends end and you too will find the ...

Why exactly do EMA crossover systems not work?

If you can find a system that automatically and quickly adapts to different market conditions (and there are ONLY 3 types of market conditions: Up, down and sideways), then I can assure you that you are set for life! Well you trade you risk, period. ...

Why exactly do EMA crossover systems not work?

Whatever the "big boys" are doing, it will always be reflected in the price. And if our trading system is robust enough it will capture the move they created. By the way, in the Forex market no big boy can manipulate the market for any significant ...

Why exactly do EMA crossover systems not work?

Hi almo, With my secret and powerful exit strategy, I would have exited this long EUR/USD position 19 pips from the top. No I am not a genius, I just spent years and years looking at the charts for hours and hours trying to discover an optimal exit ...

Why exactly do EMA crossover systems not work?

I was talking about using a simple moving average as an exit tool. Look at the chart below (AUD/CAD, 1h), the trader who bought at 1.0210 using a price-action system for example is now 270 pips richer and his exit point (price closing below the ...

Why exactly do EMA crossover systems not work?

Almo, if you put any artificial limit on your profits you are going to leave a LOT of pips on the table. Always extract the maximum of money from the market, that maximum being of course dictated by your (optimal) trading rules.

Why exactly do EMA crossover systems not work?

Granted, it takes years to master the art of chart reading. However, WHY is the market is doing this or that is absolutely unimportant, what is truly important is to time its up and down movement. That my friend is the role of the backtest, only ...

Why exactly do EMA crossover systems not work?

I respect your opinion but let me ask you a question Turveyd : Do you really think that markets change over time? Look at the daily currency charts from 1980 to 1990, then from 1990 to 2000, then from 2000 to 2010 and tell me if you see ANY ...

Why exactly do EMA crossover systems not work?

You are of course free to experiment with any trading idea and strategy, but if you keep changing your trading rules then you are curve-fitting your system, unless you are simply simply trying to determine the right values and parameters for your ...

Why exactly do EMA crossover systems not work?