Trend following trading strategy “Forex Profit System With MAs” is designed mainly for Forex and can be used on all major currency pairs on middle term time frames like 30 minutes or 1 hour. Its rules state that:
A trader should open a long trade when EMA(10) crosses EMA(25) and EMA(50) in upwards direction and Parabolic SAR is below the price (signalling long). A short position should be opened when EMA(10) crosses EMA(25) and EMA(50) in downwards direction and Parabolic SAR is above the price (signalling short). An exit from a position is implemented when the price crosses back down/up through all 3 EMA’s on the chart. A stop loss should always be set just below 50-period EMA. As the position moves in the right direction, the stop loss should be moved accordingly. The strategy doesn’t use any take profit level.
We have run the test for 2010.01.01-2018.10.01 using Each Tick modelling on USDJPY-M30, with no leverage, without reinvestment, assuming spread equals 10 ticks. These are the main parameters of financial performance, that may allow you to evaluate whether this strategy worth your attention or not:
|ROI||# of trades||Winning ratio||Max. drawdown|
The following charts may give some possible insights on which filters to apply (time sessions, day of week limitation, trend strength threshold, overbought/oversold conditions, volatility range) to turn this strategy profitable should you decide to use this strategy in your investment portfolio:
If you decide to buy an EA, coded in accordance with the strategy and used for the test, or to make any amendments to the original strategy rules – please, feel free to contact us.