• Registered: 2010-03-28
  • Posts: 2

Topic: EURUSD 5min MA Crossover Strategy

I love this Software  smile

I have been testing various strategies that relate to my manual trading. Basically Moving Average crossover systems.

The attached strategy appears to work well for the EURUSD based on a 5 minute chart.

It uses a moving average crossover but only takes trades in the direction of a larger MA, filtered by ADX to reduce the number of trades taken during quiet periods.

Using the strategy builder I have backtested it on various numbers of bars from 5,000 to 50,000 with good results.

The optimisation was done over 50,000 bars which covers the major change of direction in the EURUSD last December. Changes of trend are one of the issues with MA crossover systems as the lag inherent in MA's creates large drawdowns.

Would welcome any comments and advice before I let it loose on a live micro account.

Rik

Post's attachments

EURUSD5m.xml 6.22 kb, 155 downloads since 2010-06-06 

You don't have the permssions to download the attachments of this post.

2 Reply by fxwinner (edited by fxwinner 2010-06-06 23:53:52)

  • Registered: 2010-04-26
  • Posts: 185

Re: EURUSD 5min MA Crossover Strategy

the first thing is jumps is number of open lots.

http://my.jetscreenshot.com/1298/20100606-wwmq-42kb.jpg

You got 3 full lots on micro account, this will kill your account instantly.

you should trade standard micro lot or nano lot on micro account

190pips x 3lots=5.700 usd just to cover one trade direction!!

Not talking about strategy now till it fixed.
++
So if you an institutional trader you would trade with only 1% per direction/strategy it means you have 570.000 USD on your account.

This is not a micro account. This is premium / active trader account.

  • Registered: 2010-03-28
  • Posts: 2

Re: EURUSD 5min MA Crossover Strategy

Thanks for the comments.

I use an FXOpen Micro account where 1 full lot is 10c.

The EA opens 1 lot and adds 0.1 lots (1c) each time there is a same direction signal up to a maximum of 3 lots.

190 pips at the maximum 3 lots would mean a loss of 57.00. However, this is an extremely unlikely event as that would require the price to make 21 trades in the direction of the trend before going 190 pips in the opposite direction.

In my manual trading I normally move the stop to breakeven plus once the trade is moving in my favour. However I am unsure if this is possible using the Strategy builder. Even so, when using the Strategy Trader EA I would be looking to move the stop to a more favourable position ASAP.

My only reason for using an EA is the fact that, being based in Panama, the Frankfurt and London Sessions open around 2-3 am and with a new baby in the house trading at that time is less practical nowadays.

My Micro account now has a little over 2k in it, built up from a 100 start over the last year using a manual version of this strategy so can carry the rare occurence of the 57 loss.

I hope that clears up any misunderstanding regarding the lot size and potential loss.

Rik

  • Registered: 2010-04-26
  • Posts: 185

Re: EURUSD 5min MA Crossover Strategy

Thank you PanamaRik, for your clarifications. you do follow THE BEST practice in MM.
I suggest you not to rush with excitement to real account with hard earned money as sometimes the results are different with what we see in backtesting, due to many factors, please follow our topic here

http://forexsb.com/forum/topic/1496/liv … an-in-fsb/

to understand why / and what to do.
1. Add this strategy to DEMO account and compare  the results first (FSB=FSB=Demo), to may sure you can trust backtest.
2. After results are identical and you are happy with them move to Real.

Can you publish overview section of this strategy here?

[In my manual trading I normally move the stop to breakeven plus once the trade is moving in my favour. However I am unsure if this is possible using the Strategy builder. Even so, when using the Strategy Trader EA I would be looking to move the stop to a more favourable position ASAP.

Yes you can use Breakeven in FST, however you cannot backtest it atm, as FSB lacking this function.
All the best with your trading.