1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

MT4 - Moving Average Crossover

Discussion in 'Forex Discussions' started by eva629, Feb 26, 2009.

  1. eva629

    eva629 New Member

    Feb 26, 2009
    Likes Received:
    Believe it or not I think I'm going to use a simple moving average crossover as a signal for my automated trading system.

    Obviously, and testing verifies this, there are two issues to manage:

    1) Getting whipsawed.
    2) Entering the trend too late.

    I believe that I can at least alleviate these issues somewhat. Technical indicators can provide clues about whether or not the market is currently trending -- such that if it isn't trending you can avoid opening positions. Additionally, I believe I can impose restrictions that will greatly reduce purchases near the end of a trend.

    Even with these two problems I am able to see spectacular gains temporarily. Trends with few reversals and a slow conversion to the opposite direction yield very high profits... so I can see the potential that is available.


Share This Page