Hi all, Could anybody point me to good FX moumentum/trend-following trading strategies? I have traded major FX pairs using simple momentum (MA) type of strategies, and they don't work well. The equity curves look very choppy and up and down a lot and some times for a few years it doesn't make any money (backtest...) Any pointers to good FX momentum strategies? Thanks a lot!
Mizhael, are you in some kind of competition to see who can start the most stupid question threads on ET? If so, I can tell you that you passed cgarcia months ago and have just blown by increasenow, you are the undisputed champion! I see you have been a member of Wilmott for five years and you somehow have learned nothing in that interval.
I can actually give away a method that DID make profits when I backtested it but of course failed miserably when I tried to trade it with real money with live streaming prices. Fortunately, those were small amounts of money. Anyway, last year in March, 2009, I backtested a 6 EMA and 14 EMA moving average crossover system with 45 minute candlesticks on the EUR/JPY (for a period of 3 months, yes, not a long period of time but I think the latest patterns are the most likely to repeat themselves). Of course, after testing a wide variety of methods in the last year, I think it probably takes a lot of very specific modifications to a very simple system to make it work. I haven't proven my new ideas yet but I'd rather not give them away right now. If I make money in the next year, I might give away the idea. I'll give you a hint though, one of my ideas is to aim for very small losses and much larger profit targets. Forex Patterns and Probabilities by Ed Ponsi is one book that gives you a general idea.