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Forex

My 2MA simple Forex trading strategy

My 2MA simple Forex trading strategy

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.

AtoZForex 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.

For your convenience you can use this custom 2MA indicator which allows you to switch between two sets of preselected MAs with a click. Using the indicator you will not need to cramp your chart with more than two SMAs at a time, otherwise it will only be more difficult to analyze the market and see trade opportunities.

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.

My 2MA simple Forex trading strategy 2MA simple Forex trading strategy short example

Given the above conditions, when price trades below both moving average, we can wait for retracement back to the 20 SMA and put a sell order 2 pips below it. Stop loss should be 15 – 20pips above the 100 SMA.

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.

My 2MA simple Forex trading strategy 2MA simple Forex trading strategy long example

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.

My 2MA simple Forex trading strategy 2MA strategy example when to cut short if TP is not hit

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.

Also see: Custom 2MA indicator

If you have any questions about the strategy, let me know in the comments section below.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.