50 EMA vs 200 EMA? I took 100 TRADES to find the TRUTH… Trading Strategy – Forex Day Trading

Published on September 9, 2021

Interesting updated videos top searched Trading Forex Online, Forex Strategy, and Stochastic Crossover Signal, 50 EMA vs 200 EMA? I took 100 TRADES to find the TRUTH… Trading Strategy – Forex Day Trading.

Moving Average Trading Strategy to increase the win rate in Forex and Stock Market Trading… I took 100 but actually 200 trades with EMA
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Can the 20 period moving average increase the winrate of this trading strategy? Last time I tested the MACD zero lag trading strategy 100 times with a 200 moving average, and it didn’t have a good winrate. In fact, it was one of the worst trading strategies we have tested on the Trading  Rush channel. But what if the strategy got such a low win rate, because of the 200 Exponential moving average, and using a 20 or 50 E MA can increase the winrate? The Faster MACD indicator we saw in the last video, was really bad at showing the end of the pullback in a trend. When the pullback was big, it was giving multiple false signals in a row. So if we use a smaller period E MA instead of 200 moving average, the false signals should be filtered right? Well, why don’t we test the same strategy with the 50 period exponential moving average, to see if the bad strategy can become good because of a different moving average?

Since I have already explained what a Zero Lag MACD is, and the strategy based around it in the last video, lets focus on the 200 and 50 period moving averages this time. In simple words, moving averages are nothing but averages of the previous candles. So when the price is in a range, you can use the moving average to filter bad trades setups. And when the price is trending strongly in one direction, you can use the moving averages to find the average price, instead of buying and selling  at the extreme top and extreme bottom. Moving averages, especially the 200 period moving average, also works as a good support and resistance in a trend. For example, here’s a trade analysis I shared on Patreon. As you can see, the 200 E MA was acting as a support, and price made a move up and the profit target was hit. If we plot both 50 and 200 E MA on the same chart, and insert the Zero Lag MACD indicator that lost money in the last video, you can see, that the False signals that were valid with the 200 period moving average, were filtered with the 50 period moving average. But don’t be fooled yet. This is just one example. This doesn’t mean the MACD zero lag strategy will magically become profitable with the 50 E MA. To find out if it actually works in the long run, and to find out if a different moving average can magically turn one of the worst trading strategies into a profitable one, I took 100 trades with it, and here’s what I found out.
Number 1. Just like last time, the profit graph at the start, went in the upward direction. That’s because the trades that were won last time, made a profit this time as well. But when the trend got weaker, some of the trades that were lost last time, were filtered by the 50 period moving average. Now one might think that the 50 E MA is better, but hold that thought. Because last time, the profit graph in the Trading Rush App, went down soon after making this upward move. And if you look closely, the profit graph with the 50 moving average is also starting to go down. But why? MACD zero Lag gives false signals when the pullback is big, but we are filtering the longer pullbacks with 50 E MA right? Well yes, but now we have another problem.

If you look at the profit graph, you will notice that it still looks very similar to the previous one. That’s because, some of the trades that were lost last time, were filtered by the 50 E MA, but it also filtered some of the winning trades. So the MACD zero lag with the 50 E MA filter, was not that better than the MACD zero lag with 200 E MA filter. But, if you look at the profit graph, you will see that it went up near the end. What made it do that? The winrate with 50 E MA was as bad as the winrate with 200 E MA right? Well, yes! With a 50 period moving average, the MACD zero lag strategy gave less entry signals in the same time period. So I had to take more trades to reach the 100 trades mark. On the same market structure, changing the moving average didn’t make a significant difference to the winrate…

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Stochastic Crossover Signal

Stochastic Crossover Signal, 50 EMA vs 200 EMA? I took 100 TRADES to find the TRUTH… Trading Strategy – Forex Day Trading.

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This is where the false marketing is available in. This is the greatest indication that the instructions a price is moving will change. This is to confirm that the rate pattern holds true.

Lots of traders seek to purchase a currency trading system and don’t understand how easy it is to develop their own. Here we desire to take a look at developing a sample trading system for substantial revenues.

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In common with essentially all aspects of life practice is the crucial to getting all 4 aspects collaborating. This is now simpler to accomplish as numerous Forex websites have presentation accounts so you can practice without running the risk of any actual money. They are the nearest you can get to trading in genuine time with all the pressure of prospective losses. However remember – practice makes ideal.

The 60 minutes chart uses up about 1/3 of my screen area and the 5 minutes 2/3 of the screen space. For that reason if there is a possibility for you to do a counter pattern trade keep in mind DO NOT take that trade.

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