The cTrader Moving Average Crossover Strategy is a very commonly used system to help traders find the middle of a trend that 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.
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 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).
How are 4 Moving Average Indicators Used?
What makes this trading system so different is that you can choose the period, type and source for the fast and slow-moving average indicators which are used to enter a trade and again the period, type and source for the fast and slow-moving average indicators to exit and close trades, so you use 4 moving average indicators in total. you can turn off the feature of using moving average indicators to close trades and instead use another method.
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.
Instant Telegram Message Alerts
You can configure this trading robot to also send instant Telegram alerts direct to your PC, Tablet or mobile phone.
What Moving Averages Can You Choose?
You can choose 8 different types of moving average for each indicator, so you can mix a simple MA with an exponential MA.
- Simple
- Exponential
- Time-series
- Triangular
- VIDYA
- Weighted
- Wilder smoothing
- Hull
What Do The Backtest Results Say?
We have tested this robot with various brokers and the results are all about the same, there may be small differences, we have included some example parameter settings to help you get started.
EURUSD
Broker: FxPro, Backtest Dates: 18.06.2020 - 18.06.2021
Commission: 30 per million, Data: Tick Data from the server (accurate) - what is tick data?
Our settings are Low-Risk-Low-Returns, but you can adjust them from anywhere up to High-Risk-High-Returns.
* EXAMPLE SETTINGS INCLUDED IN THE DOWNLOAD
1-Year Backtest (Low Risk)
59% Net Profit with a Drawdown Risk of 5.27% of equity and 6.52% of the balance.
How to read the trade statistics below
How to Optimise This Robot
We also provide information to help you run the optimisation module of cTrader Automate so that you can get suitable parameter settings for your preferred symbol you wish to trade.
How to Run a Backtest
If you are unfamiliar with using the back-test feature of cTrader then you can visit our Knowledgebase where we provide traders with detailed instructions.
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 than 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
- 1st fast MA must have crossed below the 2nd slow
Rule to close a short position
- 1st fast MA must have crossed above the 2nd slow MA
Please note that the two moving averages that open trade are independent of the two moving averages that close a trade.
Also, it is possible to have a buy and sell trade open at the same time, but not 2 trades of the same side.
Trading Hours
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 then 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.
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 - Watch full-screen on YouTube
Video Update version 2.0
This video includes the new features added to version 2.0
Duration: 12 minutes - Watch full-screen on YouTube
How To Optimize - in-depth video
With the advanced optimization feature of cTrader, you can find the optimal set of parameters for your cBot, this video will explain in detail exactly what is optimisation.
Duration: 24 minutes
Product User Manual
If you need help with installation and how to use this product, visit the support page.
Optimisation Service
We offer a paid service to find the best possible settings for any given symbol, as with all automated trading systems the performance is only as good as the settings used.
How To Install & Open cBots
First, make sure you have the cTrader trading platform installed and then simply unzip the file and double-click on it to automatically install it onto the platform.
Do You Want The Full Source Code?
The source code is not included with this download, but if you want the full source code then you will need to follow the link below.
Instant Chat Support
If you want a speedy reply to your questions just post your questions on our Telegram chat group.
