Thread: A Proven Simple Strategy (2MAs, 1 RSI)

Hello everybody, Its been some time since I've posted but I wanted to share a super easy system that has been proven profitable. I hope this can help some of you on FF. I didn't make this egy and it is nothing new. Its frequently overlooked because it is so straightforward but often times that the easiest egies can be the ideal. I've altered the original trading rules a little bit to rules that fit my trading style a little better.

DISCLAIMER: THIS IS NO GRAIL. I AM NOT CLAIMING THIS TO BE A HOLY GRAIL. This Is Only A SYSTEM THAT WORKS, THAT IS ALL.

Things To Remember:
1. This is meant to be traded on Daily Charts. I will also post the results for other timeframes towards the bottom of the post(coming shortly ).
2. There's not any Hard SL or TP to this system. I haven't found any configurations using ATR or comparable tools to place an SL TP that improved the system. Consequently I don't use one with this system and only following the signals.
3. This system is not perfect. Just like all systems, it performs better on specific pairs during specific conditions. What really allows you to benefit from the system and avoid this variance is diversifying the tools you exchange it on!!!
4. Test results used a fixed lot size that does not increase.
5. Tests were conducted on 7 major USD pairs(EU, GU, AU, NU, UJ, UCHF, UCAD).

Thread Rules:
1. Do not include extra indiors. You may adjust current indior settings and share your results if you'd like.
2. If you're going to suggest adjustments to the system, please provide hard evidence to support why these modifications are profitable or better.
3. Keep it friendly. Please no junk.
4. Again nobody likes conjecture. Do not make statements or claims about this system or some other system here if you do not provide proof for the claims you're making.
5. Have fun !


Entrance Rules:
Long:
1. Price is over 200 MA.
2. Price is under 5 MA.
3. RSI(2) is under 5.

Short:
1. Price is under 200 MA.
2. Price is over 5 MA.
3. RSI(two ) is over 95.

Exit Rules:
Option 1(This option is for people who only wish to confirm the chart at the end of the afternoon, This is the Option used in results under ):
Exit in the finish of the candle which touches the 5 ma.

Option 2(This is a better option for people that wish to watch their trades like a hawk):
Exit as soon as price touches 5 ma.

So as they say, the proof is in the pudding. Well, this really is my pudding, along with some other peoples pudding.

The Pudding:

In House Pudding:
The first batch of pudding I will reveal is my batch. Although there are other studies done about this system which I will share below, it is always smart to check the system for yourself before you even consider using it.

EURUSD Daily Jan 2010 - Dec 2015 - Fixed .10 Lots - Spread = Current(Tests ran during NY Session)



Summary:
P/L: 290.00
Profit Factor: 1.10
Expected Payoff: 3.92
Max DD: 8.35%



GBPUSD Daily Jan 2010 - Dec 2015 - Fixed .10 Lots - Spread = Current(Tests ran during NY Session)



Summary:
P/L: 923.80
Profit Factor: 1.31
Expected Payoff: 9.15
Max DD: 6.71%


AUDUSD Daily Jan 2010 - Dec 2015 - Fixed .10 Lots - Spread = Current(Tests ran during NY Session)





Summary:
P/L: 459.10
Profit Factor: 1.20
Expected Payoff: 5.28
Max DD: 8.62%


NZDUSD Daily Jan 2010 - Dec 2015 - Fixed .10 Lots - Spread = Current(Tests ran during NY Session)





Summary:
P/L: (132.70)
Profit Factor: 0.95
Expected Payoff: (1.37)
Max DD: 4.23%

USDJPY Daily Jan 2010 - Dec 2015 - Fixed .10 Lots - Spread = Current(Tests ran during NY Session)






Summary:
P/L: 2200.83
Profit Factor: 2.57
Expected Payoff: 21.57
Max DD: 2.63%

USDCHF Daily Jan 2010 - Dec 2015 - Fixed.10 Lots - Spread = Current(Tests ran during NY Session)





Summary:
P/L: 61.42
Profit Factor: 1.02
Expected Payoff: 0.65
Max DD: 6.86%


USDCAD Daily Jan 2010 - Dec 2015 - Fixed.10 Lots - Spread = Current(Tests ran during NY Session)






Summary:
P/L: 80.29
Profit Factor: 1.04
Expected Payoff: 0.80
Max DD: 5.90%


OVERALL RESULTS
P/L: 3882.74(38.82%)
Avg Profit Factor: 1.31
Avg Expected Payoff: 5.71
Avg MAX DD: 6.19%

Summary:
Overall this system performed quite well over the last 5 years. As I mentioned previously it is key to diversify when employing this egy or some other like it because some pairs will execute others as market conditions change. Diversifying will battle this variance as shown in the results over.


Out Sourced Pudding:

https://www.nigeriaforextrading.com/...1909465341.pdf

Summary:
As you can also see from these results, diversifying really helps this system by reducing the natural variance which will occur between individual pair operation.

Trade daily TF no need to use any indior, only the candlestick enough, easy and powerful. Just suggestion.

OVERALL RESULTS
P/L: 3882.74(38.82%)
Avg Profit Factor: 1.31
Avg Expected Payoff: 5.71
Avg MAX DD: 6.19Percent

Duration: 6 years
39 Percent / 6% = 6.50% annual
deposit your Cash to a bank, safer

Originally Posted by ;

Hello everybody, Its been some time since I have posted but I wanted to discuss a super easy system that's been proven profitable. I hope this will help some of you here on FF. I did not make this egy and it is nothing new. Its often overlooked because it's so straightforward but often times the easiest egies can be the ideal. I have modified the original trading rules a little bit to principles that match my trading style a little better.

Hi Sis.yphus,

Thank you for sharing this particular system.

This is my Comprehension of the system as introduced:Sort: Trend following method, where trend is characterized by MA(200) Entry: Entrance retraces captured by MA(5) and RSI(2). Exit: Based on MA(5). The idea is great.
Entrance is fine, although one condition -either MA(5) or RSI(2)- may be sufficient.

But for your Exit, I think we can handle better exits. And this is precisely what I will attempt to demonstrate in the forthcoming days.

That I am not positive whether you generated these tests manually or using an EA,
Anyway, I will make an EA (in case you don't mind), with exactly the identical idea and different exit options and determine if we could get better results.

Best,

Khalil

'OVERALL RESULTS
P/L: 3882.74(38.82%)'

Initial Bank 70,000 (7 X 10,000)

Profit 3882.74 (5.54%)

Within 6 years Following 0.92%/annum

I Would find another hobby if I were you.

It is a fantastic egy, however...

....and that the SL??????????????????????

This can be a quick EA to test the machine.
I have added few options, but the default settings are as per Sis.yphus rules.
https://www.nigeriaforextrading.com/...1014019600.ex4

Dear all,
simple systems may be the most profitable.
Abo, thanks for the EA. Would be interesting to see the results.
Perhaps test the EA with a fixed SL/TP (TP being gt; than SL)?
cheers

How about an SL set at 10 pips over highest price of closed candle (candle which broke the 5EMA). TP could be set at the conclusion of next candle. Sure your risk/ratio won't always be 2:1 but it is simple to specify and a quick exit.


For those looking to ride the fad, perhaps using a SL set at half of the last closed candles range and also just simply move it at the close when you're setting up your next entries.

See attachment

Ideas?

Originally Posted by ;

Trade daily TF no need to use some other indior, only the candlestick enough, easy and powerful. Just suggestion.

Please show us that a super rigid/mechanical systems such as this that does not use any indiors along with proof that system works. Most price action traders are king snake oil revenue men. And its always so convenient how their systems can not be proven however they can work...

Originally Posted by ;

OVERALL RESULTS P/L: 3882.74(38.82%) Avg Profit Factor: 1.31 Avg Expected Payoff: 5.71 Avg MAX DD: 6.19percent Duration: 6 years 39% / 6 = 6.50% annual deposit your money to a bank, safer

Again this can be FIXED lot trading using a very small account of 10,000. If you traded this system utilizing a very large account(which most professional traders have cash ) you'd have made a mint compounding your results.

Also please show me a bank(U.S.) with 6 percent interests rate and that I will quit investing all together, stick my savings in their and never work again....

Originally Posted by ;

'OVERALL RESULTS P/L: 3882.74(38.82%)' Initial Bank 70,000 (7 X 10,000) Profit 3882.74 (5.54%) Over 6 years following 0.92%/annum I would get another hobby if I were you.

Together with the lot sized utilized in the test you can exchange all 7 pairs in precisely the same time and not run into margin problems. In other words the same 10,000K may easily exchange all 7 pairs in.1 lot dimensions.

Originally Posted by ;

It's a good egy, however.......and that the SL?????????????????????? image

... Please browse the thread. It's the next thing to keep in mind about the OP....

2. There's no challenging SL or TP to this system. I have not found any configurations using ATR or comparable tools to place an SL TP that improved the system. With only and this system I do not use one Because of this following the signs.

Also if this blue line is the 200 MA the trade you've marked is invalid as price should shut ABOVE the 200 and BELOW the 5. Below both MAs it's shutting From the pic.