I tried this system on pairs other than USD pairing and lost on all counts coz prices came back and tested the MA thereby taking me out. I suppose Euro, GBP and JPY are the only ones you can trade with this system. How would you use a momentum indicator for signals? How does it work and with what period?
What a shame. But a trend-following system needs trends - but this system should catch all the big moves. Momentum: 55 on a 30 min chart. Buy when it goes north from below 40 - and sell when it goes south from over 60. Better than RSI, but not perfect.
My momentum scale ranges from -0.030 to +0.020. How does the 40 and 60 fit in here? I have set it to 55 on a 30 min scale. Thanks
But I am only looking at momentum to see if it's over or below 0. I loves to sell when it comes down fra a real high - or buy whenit goes up from a deep low.
Since the momentum is hovering around zero at the moment, and the prices are fluctuating around the MA 50 also, do you buy / sell every single one of those crossovers if the momentum agrees by a small fraction?
In a trending market - yes (because momentum can fool you). In a trading range/flat market - no. We must listen to the market.
I take it you still use the 10 pip filter and still place your stop loss at just below MA50 and still move the stop to break-even when 20 pips profit and still move stop loss to 10 pips above entry when in 30 pips profit. Is this all still valid?
How do you know when its moving fast? At the moment, it has small candles or bars but you never know when its gonna make a huge spike and drop like a rock just like it did earlier. So what makes you decide that the current market is either a trending one or a sideways one or a fast market or a slow market?