Hello Friends ,
I am writing this blog to share views on my winning strategy San_new. I am glad that I could make out in top 3 in strategy contest for August month.
It is very well known in the trader community that moving averages hold a major place in the trading tool box , thus I have taken this into consideration and planned my strategy accordingly. In this strategy , I have used EMA(5) and EMA(13) as exponential moving average captures any reversal in trend quicker then slow moving averages. I have also used stochastic oscillator to determine overbought/oversold levels of the currency pair.
So the principle is when EMA(5) crosses EMA(13) from beneath , it checks level of stochastic oscillator and if the level of stoch is not in overbought area it places a buy order and accordingly if EMA(5) crosses EMA(13) from above it takes reference of stoch and places the sell order if the level is not in oversold area. Parameters (like EMA 5&13 as well as of stoch ) of the strategy are very carefully selected by days of testing and by optimal results considering maximum draw down , contest conditions , etc .
A] In this image we can say , when EMA 5 crossed EMA 13 in that current candle from above it placed a sell order. This was possible because Stoch had not reached oversold area.
B] This is a good example of the strategy, as we can see a buy order was placed in the red candle when it could satisfy both the conditions.
C] Here crossover takes place but as stoch was in overbought area it took time to place a buy order in the next candle.
This strategy has help me win several times , I am sure it would be helpful to you too so do try using it. Good Luck !
I am writing this blog to share views on my winning strategy San_new. I am glad that I could make out in top 3 in strategy contest for August month.
It is very well known in the trader community that moving averages hold a major place in the trading tool box , thus I have taken this into consideration and planned my strategy accordingly. In this strategy , I have used EMA(5) and EMA(13) as exponential moving average captures any reversal in trend quicker then slow moving averages. I have also used stochastic oscillator to determine overbought/oversold levels of the currency pair.
So the principle is when EMA(5) crosses EMA(13) from beneath , it checks level of stochastic oscillator and if the level of stoch is not in overbought area it places a buy order and accordingly if EMA(5) crosses EMA(13) from above it takes reference of stoch and places the sell order if the level is not in oversold area. Parameters (like EMA 5&13 as well as of stoch ) of the strategy are very carefully selected by days of testing and by optimal results considering maximum draw down , contest conditions , etc .
A] In this image we can say , when EMA 5 crossed EMA 13 in that current candle from above it placed a sell order. This was possible because Stoch had not reached oversold area.
B] This is a good example of the strategy, as we can see a buy order was placed in the red candle when it could satisfy both the conditions.
C] Here crossover takes place but as stoch was in overbought area it took time to place a buy order in the next candle.
This strategy has help me win several times , I am sure it would be helpful to you too so do try using it. Good Luck !