My Long-Term Strategy

Discussion in 'Forex' started by AJFCapital, Dec 23, 2009.

  1. The attached picture explains it pretty well.

    I only do it on the EURUSD 4H chart and I use leverage of 1:1 (since it's a pretty long timeframe you have to be ready for some big swings in the negative). I simply go long when the MA's cross and switch my position when they cross the other way.

    On the upward trend (which started at the end of April) I closed with just over 1700 pips. On the current downward trend, I'm just over 450 pips.

    This is just one of the few strategies I use. Its been pretty good, only thing that kinda sucks is the swap.

    Hope this helps some of the new fx traders.

  2. If you're not trading on margin, why bother with the rolls, just exchange your amount with a bank and hold until your signals. Of course the spread is not as tight with a bank, but that depends on the amount. If you're talking in the millions, it might be doable through multiple banks.

    But the roll yield can work in your favor too of course, but obviously not so much with EUR/USD.
  3. I've never even thought about that...I'm gonna do some research, thanks.

    The rolls aren't really that much, when talking about its % of my trade or my account value. But I see it sometimes and just think 'it would be nice to have that little bit of extra money back'.
  4. I believe the rolls can complicate your taxes some, I'm not sure though, ask an accountant. Just something to consider.

    Obviously by going through a broker you can close out positions much quicker than with a bank. But if you're 1:1, you probably aren't concerned about massive swings in between banking hours. Then again, you have to accounts for the possibility of currency collapses. It can not be ruled out entirely. A broker would presumably be an advantage to holding physical or digital in a bank.
  5. henry76


    3 or 4 trades arn't anything but chance
  6. okay. what number doesn't make it chance?

    ...I bet I've reached it...
  7. Btw, why is the EMA on the Open and the SMA on the Close?
  8. This strategy was presented to me by my brother. I don't really know why one is on open and the other close.

    I will have to ask him over Christmas.
  9. What is with the shift -20? The SMA lags 20 days?
  10. It's the 50 day SMA but pushed to the left 20 candles. If you look at the far right of the graph picture, you can see the purple MA isn't at the end of the candles.

    You do need to do some anticipation with this two ppl will get the same results.

    If you don't anticipate, you would still get some good results
    #10     Dec 23, 2009