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 period of time. Generally, trends are either upward or downward, as sideways movements are considered consolidation and not trends.
~ Only a single buy or sell position will be open at any time ~
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?
The faster moving average is a short-term moving average. ... A moving average, as a line by itself, is often overlaid in 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 crossing 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.
Option to Turn off Auto-Trading
With Auto-Trading turned off you can use this system as a signal generator to receive an email or a pop-up window.
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.
Rule to close a buy position
1st MA must be less than 2nd MA and 1st MA signal must be falling
Rule to close a short position
1st MA must be greater than 2nd MA and 1st MA signal must be rising
This Simple Strategy Will Work on All Symbols
We ran a back-test on Gold XAUUSD and without any optimization, we got the following results.
Starting Capital: £1000.00
Date Range: 1 year
Profit: £570.00 (+57%)
Drawdown: 21.79% - using a £5000.00 capital the DD is 4.42%
~ We will include the XAUUSD settings with the robot ~
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
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
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If you are not using the cTrader platform, you can find out more about it by clicking on the link below.
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Do You Want To Add Additional Features?
If you want to add more indicators or additional features to this robot then you would need to purchase the source code so that you own the project 100%
~ source code not included for the price stated above ~
The robot is delivered to you without source code for the price stated above, but if you wish to own and have the full source code so you can modify the robot yourself than we can sell you this robot for £99.99, if you have already purchased the robot then we will deduct the price you paid from the total price.
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
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