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  1. #1
    Administrator Martin Kay's Avatar

    Fast Moving Averages Crossover Strategy Review !!!

    Hi guys! The Fast Moving Averages Crossover system review is finally up! Does the Fast Moving Averages Crossover system suck or doesn't suck? Let the discussion begin!

    The complete review of the Fast Moving Averages Crossover system can be read here .


    Quote Originally Posted by Bogdan G
    Why Fast Moving Averages Crossover Doesn’t Suck?


    I can strongly state that it is not a scam. Nobody looks for any financial gains if we use the system, it is posted on a free website and the indicators used are common to any trading platform. Of course, using just three EMAs makes it very easy to trade and you don’t need to be a rocket scientist to operate it so that’s a plus too. However, one of the things I like most is the fact that it can give big profits, while the losses are kept relatively low. So, if price starts trending strongly after we enter our first trade, we can open another one as long as the three EMAs are properly aligned; if immediately after we entered a trade, price moves against us and the 10 EMA crosses back the other two EMAs, we can use the “Close Early” function of our Binary platform (if the broker we are trading with provides such function or a similar one) and we will not suffer the loss of the full amount at risk. By doing this we can increase our profits and minimize loss and we can, to some extent, neutralize the late and/or false signals given by the system in ranging, slow markets.

    Why Fast Moving Averages Crossover Does Suck?


    The first thing I want us to focus on is that this is not a trend following system in its most basic form. The entry is triggered by a change of the current direction of price, thus a counter trend move (for the 10 EMA to cross both the other two EMAs, price must definitely change direction). However, once the EMAs are aligned the way we need them and we are in a trade, we are trading in the direction of the newly formed trend until they cross again. Given that the move that generated the EMA crossover can be just a retracement of the prevailing trend, this strategy can be risky sometimes. On the other hand, if it is not a retracement, due to the lagging nature of the Moving Averages, we can open the trade late sometimes and miss out on a big part of the action. However, the ranging market, with low volatility is the time when this system really sucks, giving us tons of late and/or false signals.

  2. #2
    Rookie Member
    Would the Fast Moving Averages Crossover System work with an expiry period of 15 minutes?

  3. #3
    Rookie Member
    I do not think it expires within 15 mins but more reseach might be a good way to go
    Quote Originally Posted by RTrader874 View Post
    Would the Fast Moving Averages Crossover System work with an expiry period of 15 minutes?

  4. #4
    Rookie Member
    How can I be able to know the best broker to use? I think their is more chances of success if you use very good brokers.
    I have been researching more on your comment Martin Kay and will see if I come up with something.

  5. #5
    Master Member Bogdan G's Avatar
    Quote Originally Posted by RTrader874 View Post
    Would the Fast Moving Averages Crossover System work with an expiry period of 15 minutes?
    Well, yea, it would, especially if you choose a lower time frame (like 1 min) to watch for the cross. A crossover on the 1 min TF will give your trade 15 candles until expiry time. In those 15 candles, price has time to go your way. Unfortunately price doesn't go where we want it straight away, it sometimes needs time.

  6. #6
    Master Member Bogdan G's Avatar
    Quote Originally Posted by bitterB View Post
    I do not think it expires within 15 mins but more reseach might be a good way to go
    The strategy itself does not expire...ever , it just gives us the signal for the Call or Put. Depending on your chosen expiry time, you select the appropriate time frame to use on your charts to look for the crossover. I like to give my trades more time so for a 15 min option expiry time i would use 1 min charts to see the crossover. If i'm not clear, i will try to further explain.

  7. #7
    Specialist Member TAllen1429's Avatar
    From using trigger methods similar to this crossover system over the years, here are a few points to consider.

    1. Better results can be obtained using the longer time-frames from the hourly upwards because of their superior statistics which will drive the exponential moving averages. In addition, match expiry times of your Binary Options to the timeframe, i.e. use Daily timeframe and Daily expiry time together.

    Although the number of trades drops significantly with longer timeframes, you can compensate this by trading more currency pairs concurrently. The most important point is to devise and use a winning system.

    2. Such systems are practically useless during the release of important news events, such as the US non-farm payrolls, because of the extreme volatility that can be generated at those times. Wait until at least one hour after such releases before recommencing trading.

    3. As stated in the initial introduction, such systems produce more losses and false signals during times of range-trading and low volatility. Consider using a trend-strength technical indicator, such as the Average Directional Movement Index, in conjunction with the Moving Averages to filter these losses out.

    4. Initially, use currency pairs with the lowest spreads, such as the EURUSD, as this will increase your chances of success.

    5. Optimize the performance of the Fast Moving Averages Crossover by back-testing using the trading charts supplied with the MT4 platform. Record the results for at least 20 previous cross-overs of every setting selected. Compare the results for different currency pairs and timeframes, etc. As, you need to identify selections that can generate at least 6 wins out of every 10 trades to record a profit when using Binary Options, your testing will need to be accurate.

  8. #8
    Master Member Bogdan G's Avatar
    Quote Originally Posted by TAllen1429 View Post
    From using trigger methods similar to this crossover system over the years, here are a few points to consider.

    1. Better results can be obtained using the longer time-frames from the hourly upwards because of their superior statistics which will drive the exponential moving averages. In addition, match expiry times of your Binary Options to the timeframe, i.e. use Daily timeframe and Daily expiry time together.

    Although the number of trades drops significantly with longer timeframes, you can compensate this by trading more currency pairs concurrently. The most important point is to devise and use a winning system.

    2. Such systems are practically useless during the release of important news events, such as the US non-farm payrolls, because of the extreme volatility that can be generated at those times. Wait until at least one hour after such releases before recommencing trading.

    3. As stated in the initial introduction, such systems produce more losses and false signals during times of range-trading and low volatility. Consider using a trend-strength technical indicator, such as the Average Directional Movement Index, in conjunction with the Moving Averages to filter these losses out.

    4. Initially, use currency pairs with the lowest spreads, such as the EURUSD, as this will increase your chances of success.

    5. Optimize the performance of the Fast Moving Averages Crossover by back-testing using the trading charts supplied with the MT4 platform. Record the results for at least 20 previous cross-overs of every setting selected. Compare the results for different currency pairs and timeframes, etc. As, you need to identify selections that can generate at least 6 wins out of every 10 trades to record a profit when using Binary Options, your testing will need to be accurate.
    Yep, those are definitely good advices and should be followed by anyone that wants to trade this strategy. Even the best strategy in the world would produce bad results if the user is not accustomed to all the details, even the smallest one of the system he is using.

    All the best

  9. #9
    M.J
    M.J is offline
    Veteran Member M.J's Avatar
    Quote Originally Posted by TAllen1429 View Post
    From using trigger methods similar to this crossover system over the years, here are a few points to consider.

    1. Better results can be obtained using the longer time-frames from the hourly upwards because of their superior statistics which will drive the exponential moving averages. In addition, match expiry times of your Binary Options to the timeframe, i.e. use Daily timeframe and Daily expiry time together.

    Although the number of trades drops significantly with longer timeframes, you can compensate this by trading more currency pairs concurrently. The most important point is to devise and use a winning system.

    2. Such systems are practically useless during the release of important news events, such as the US non-farm payrolls, because of the extreme volatility that can be generated at those times. Wait until at least one hour after such releases before recommencing trading.

    3. As stated in the initial introduction, such systems produce more losses and false signals during times of range-trading and low volatility. Consider using a trend-strength technical indicator, such as the Average Directional Movement Index, in conjunction with the Moving Averages to filter these losses out.

    4. Initially, use currency pairs with the lowest spreads, such as the EURUSD, as this will increase your chances of success.

    5. Optimize the performance of the Fast Moving Averages Crossover by back-testing using the trading charts supplied with the MT4 platform. Record the results for at least 20 previous cross-overs of every setting selected. Compare the results for different currency pairs and timeframes, etc. As, you need to identify selections that can generate at least 6 wins out of every 10 trades to record a profit when using Binary Options, your testing will need to be accurate.
    Good points and very helpful for newbies.
    Just to add to point 1. Number of trades drop significantly when using longer timeframes. One way is to trade more currency pairs as u said. The other way is to increase amount per trade. It is because sometimes traders r good in just one type of asset and do not feel comfortable in trading others. So they can invest more per trade to get more profit.

  10. #10
    Master Member Bogdan G's Avatar
    Quote Originally Posted by M.J View Post
    Good points and very helpful for newbies.
    Just to add to point 1. Number of trades drop significantly when using longer timeframes. One way is to trade more currency pairs as u said. The other way is to increase amount per trade. It is because sometimes traders r good in just one type of asset and do not feel comfortable in trading others. So they can invest more per trade to get more profit.
    ...this means increasing risk. I'm not saying it's a bad thing, because risk appetite differs from trader to trader; I'm just making sure the new guys understand this.

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