“Two MA’s” Forex Trading Strategy.

“Two MA’s” forex trading strategy is a quite simple method based on moving averages for EUR/USD currency pair on the H1 timeframe. Although other timeframes are applicable to this strategy, different settings have to be chosen separately.

One of our followers has sent this trading strategy, saying that a certain number of traders use it in profitable trading, despite the fact that it’s using simple indicators.

First of all, we should add the following moving averages to the chart:

- Exponential Moving Average with the period of 120 hours (blue curve on the screenshot below);
- Exponential Moving Average with the period of 10 hours (green curve on the screenshot below).

Conditions for LONG positions according to “Two MA’s” forex trading strategies are as follows:

1. The price is above the EMA120.
2. Once the price reached and touched EMA120 from upside, we open a LONG position in the range of 0 to 5 pips (buy-limit order is possible).
3. The take-profit order has to target the nearest high.
4. The stop-loss order has to be twice less than the take-profit target. The trailing stop-order could also be used on lows and points touching EMA10.

“Two MA’s” Forex Trading Strategy.


Conditions for SHORT positions according to “Two MA’s” forex trading strategies are as follows:

1. The price is below the EMA120.
2. Once the price reached and touched EMA120 from downside, we open a SHORT position in the range of 0 to 5 pips (sell-limit order is possible).
3. The take-profit order has to target the nearest low.
4. The stop-loss order has to be twice less than the take-profit target. The trailing stop-order could also be used on highs and points touching EMA10.

Additional conditions and filters for “Two MA’s” forex trading strategy:

- If the price crossed or closed breaching EMA120 (even with the single candle), that’s a base for closing the deal manually when the price comes back to EMA120 (in the range of 0 to 5 pips) and reversal in the opposite direction.
- If the breakthrough candle closed in the range of 0 to 5 pips, a deal on the next candle opening is possible without waiting for the bounce to EMA120.
- If the EMA10 is in a horizontal position or close to it (+10 or -10 of the EMA120 range) on the daily close, then deals should not be opened until the price gets out of that range.
- The candle’s body, which is approaching the EMA, should not exceed 60 pips.
- The take-profit order has to be equal to 20 pips at least. Otherwise, the deal has to be cancelled.
- The minimal stop-loss order has to be equal to 15 pips.
- Once the price crosses EMA10, the deal should be set to non-risk mode, and if the stop-loss order triggered, the next bounce candle should occur before opening another deal in the same direction.

The statistics of using “Two MA’s” forex trading strategy during the 10 months period starting from January 2018 is positive with the total profit of 1412 pips. The overall profitable positions showed 2797 pips while negative deals took a loss of 1385 pips with the maximum drawdown of 171 pips occurred.
See also:
‘Step’ Forex trading strategy.
‘Step’ Forex trading strategy.
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Forex trading strategy ‘Two to one’.
Forex trading strategy ‘Two to one’.
21.11.2018
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