The Moving Average Crossover Strategy is a very commonly used system to help traders find the middle of a trend. A trend defines price action in which prices move in a specific direction over a while. Generally, trends are either upward or downward, as sideways movements are considered consolidation and not trends.
EXAMPLE PARAMETERS WITH GOLD SPOT US DOLLAR - XAUUSD
How Do We Capture a Trend?
Short-term trends can be captured using short-term moving averages.
Long-term trends can be captured using long-term moving averages.
An example is a 5-day moving average of the EURUSD crosses above the 20-day moving average of the same symbol.
What Is a Fast and Slow Moving Average?
moving average is a short-term moving average. ... A moving average, as a line by itself, is often overlaid on price charts to indicate price trends. A crossover occurs when a faster-moving average (a shorter period moving average) crosses a slower moving average (a longer period moving average).
You can also show a pop-up window and have an email sent to you when the two moving averages cross.
What Moving Averages Can You Choose?
You can choose 7 different types of moving average for each indicator, so you can mix a simple MA with an exponential MA.
How Can You Use This Automated Trading System?
The chart below shows a position that was closed with profit using this trading robot, it shows a faster-moving average (blue line) with a period of 5 crossings
above the slower moving average (green line) period 20, at this point a buy position open and closed when the fast MA crossed below the slow MA.
Closing Only When the Two MA's Cross
If you set your stop loss and take profit values to zero then the robot will close only when the two MA's cross, but there is a little bit more to it then that, it has some extra logic for a better performance show below. Please note that a single position will only ever be open at any time unless you turn off the
Close on Crossover Feature.
Rule to close a buy position
st MA must be less than 2 nd MA and 1 st MA signal must be falling
Rule to close a short position
st MA must be greater than 2 nd MA and 1 st MA signal must be rising
This is very important and will vary from symbol to symbol, with XAUUSD there is unpredictable volatility at certain times of the day, for example, heavy trading could happen in the morning or late afternoon, this is why the parameters we use are 09:00 - 13:00 GMT. If trading hours are used than the robot will only open positions during the set hours, but it will continue to manage the trailing stop, take profits and stop losses at all times.
Adjustable Settings & Features
We have made sure that you are not just buying a strategy that just opens and closes positions when the two MA's cross each other, we have included the most useful risk management and alert features that you will need to get the most out of this robot.
Email & PopUp Alerts
If you turn on either the email or the popup alert then when a signal occurs and a position opens you will be informed that this event has occurred, you also have the option to turn off auto-trading and use this just as a signal system.
How a Top Trader Uses Moving Average Crossovers
Watch a Video Demonstration
The video has been uploaded to 1080p High Quality, so do not forget to set your U-Tube video quality to 1080p HD.
Duration: 18 minutes
How To Optimize Robot Settings
With the advanced optimization feature of cTrader, you can find the optimal set of parameters for your cBot.
Duration: 24 minutes
How To Install
First, make sure you have the
cTrader trading platform installed and then simply unzip the file and double-click on it to automatically install onto the platform.
Product User Manual
If you need help with installation and how to use this product, visit the support page.
If you cannot find the help you need on the product support page then submit a support ticket.