I share with you my personal 2MA simple Forex trading strategy with 70% profitability so you would see that its not about complexity in Forex but rather consistency, psychology, and persistence.
We have many different Forex trading strategies and each one seems to be more complex than the other. But I find simplicity and profitability in two simple moving averages (SMAs). Therefore I want to share with you my simple Forex trading strategy with which I managed to achieve 70% win ratio. Hopefully this way you will relies that you don’t need to have a complex strategy to be profitable in Forex.
2MA Forex trading strategy
The simple strategy includes 20 and 100 simple moving average applied to median (Median Price HL/2). It works best on G10 pairs and H1 timeframe.
2MA strategy condition to Sell
In order to short a given instrument, price must be in a downtrend with both 20 and 100 SMAs slopping to the downside or flat and Moving Average Convergence Divergence (MACD) below a neutral 0 line.
2MA strategy condition to Buy
Likewise, in order to long a given instrument, price must be in an uptrend with both 20 and 100 SMAs slopping to the upside or flat and MACD above the neutral 0 line.
With these conditions in place, once again we can wait for a rice retracement back to the upward sloping 20 SMA and put a buy order 2 pips above it. Stop loss should be 15 – 20 pips below the 100 moving average.
2MA simple Forex trading strategy tips
Using the above method I achieved 70% profitability. I use Take profit of around 30 to 40 pips.
However, I don’t enter trades if a Stop loss is more than 100 pips. Lastly if the price goes against me I cut my losses even before SL is hit if I see bullish or bearish price action formation accordingly.
Any questions or suggestions it will be much appreciated.
This is one of the simpler strategies but it does work if you stick to the rules. Have a friend who does something similar.
I couldn't work this in the long run because of emotions. Didn't cut cut the losses with discipline.
Hello my friend thank you for your comment. I totally agree with you. You must be consistent and discipline and treat market with respect
Hi! I am a robot. I just upvoted you! I found similar content that readers might be interested in:
https://atozforex.com/news/my-2ma-simple-forex-trading-strategy/
Which is mine also ;)