The Triple Moving Averages Trading Strategy.

The strategy decription:

  • Use three moving averages with periods of 5, 8 and 13. The smoothing method is average.
  • Use the average price (high + low/2) without shift.
  • Market: Forex
  • The time frame: H1
  • The currencies cross: GBP/USD

Assumptions:

  • 1. If the values of the MA are located on-order it is indicated that there is trend on the time frame. (For example: if the value the fastest MA is more than values of other MAs and if the value of the slowest MA is less than values of other MAs so this is rising trend).
  • 2. the most profitable price for bay during a rally below its average value.
  • 3. the most profitable price for sale on the bear markets is above its average value.

Triple Moving Averages Triple Moving Averages

Trading Signals:

The Signal to the opening position is generated as the following:

  • 1. Detect the presence and direction of the trend (see above). The trading is possible only in the direction of the trend.
  • 2. Put the limit order between the middle and slowest MA.
  • 3. Closing of positions is performed when the price achieves the take profit or stop loss value or when the opposite signal was generated.

Risk management:

  • TP = 35 pips, SL = 150 pips,
  • The maximum number of simultaneously open positions = 2,
  • Place orders from 9.00 till 19.00 CET.