In a earlier article, I confirmed you easy methods to create a completely automated 50-200 shifting common crossover buying and selling technique, with out coding.
Now I’ll present you the backtesting outcomes of that technique for each market that I’ve examined.
I am going to present you each the nice and dangerous.
You need to backtest this technique your self to just be sure you’re snug with it and that it truly works together with your dealer.
Even when a method would not work properly, you possibly can check concepts on easy methods to enhance it and make it way more worthwhile.
Now let’s transfer on to the buying and selling plan and the outcomes for every market.
Bear in mind: That is solely a place to begin for YOUR buying and selling methods. That is for informational functions solely and the outcomes beneath is not going to assure profitable buying and selling.
As I backtest new markets, I am going to add the outcomes to this web page.
Bookmark this web page and examine again periodically if you wish to get future updates.
The 50-200 Crossover Technique Buying and selling Plan
Listed here are the principles for this plan:
- Purchase
- Purchase when the 50 SMA crosses above the 200 SMA
- Cease Loss ultimately swing low
- Danger 1% per commerce
- Take revenue a 1R (1 instances danger)
- Promote
- Purchase when the 50 SMA crosses beneath the 200 SMA
- Cease Loss ultimately swing excessive
- Danger 1% per commerce
- Take revenue a 1R (1 instances danger)
Make sure to learn the full 50-200 Transferring Common Crossover automated technique tutorial to find out how I did these backtests in just some minutes, with out coding.
Backtests
EURUSD
Weekly Chart
On this timeframe, there is not sufficient information to pursue this technique.
With solely 10 trades, you merely will not get sufficient trades to make this viable.
Day by day Chart
This truly seems to be fairly good.
True…the return may be very low, however the max drawdown can also be low and the technique stayed worthwhile all through the complete check.
So this might be an excellent technique to optimize, or commerce in a number of markets, assuming that the outcomes are favorable in these markets too.
No ensures clearly, additional testing must be performed.
4-Hour Chart
This technique was worthwhile for a lot of the testing interval, so this might be an excellent timeframe to start out experimenting with.
Sure, the return was breakeven.
However the graph is extra promising than a lot of the others on this listing.
It executed 209 trades, which is first rate.
If this works in different markets, then the mixed return may produce a major return.
Once more, backtest this for your self.
That is solely meant to be a place to begin.
1-Hour Chart
The return on this technique was breakeven, so there’s potential to presumably optimize this timeframe.
On the upside, the technique did execute fairly just a few trades.
30-Minute Chart
The outcomes on this timeframe aren’t value analyzing additional, a minimum of with this model of the technique.
5-Minute Chart
The outcomes are horrible on the 5-minute chart, so no additional evaluation is critical.
AUDUSD
Weekly Chart
Not sufficient trades right here to start out utilizing this timeframe.
Day by day Chart
This might be tweaked as a result of the outcomes are breakeven. The most important concern is that there aren’t very many trades, so I would not pursue this one.
4-Hour Chart
One other breakeven consequence, so it may be one thing value tweaking.
1-Hour Chart
Breakeven once more. Possibly it is value just a few tweaks, however I would not spend loads of time on it.
30-Minute Chart
Fairly horrible outcomes, so in all probability not value messing with. Transfer on.
5-Minute Chart
Identical to with the EURUSD, the 5-minute chart is totally ineffective, so this isn’t value exploring.
It just about blew out the account.
Notes and Observations About this Technique
To date, the decrease timeframes are exhibiting a lot worse outcomes.
Due to this fact, it may be higher to stay to the day by day and 4-hour charts.
Additionally, the cease loss on this technique might not be superb.
Generally the cease finally ends up being too distant and it takes awhile for value to hit the goal.
Extra testing and optimization must be performed.
Discover ways to construct and tweak this technique and check your individual concepts and also you would possibly come out with higher outcomes than me.
Conclusion
In order that’s how this technique stacks up in all of these markets.
I will be including new backtests as I do them, so be sure you bookmark this web page and examine again periodically to see if I’ve any new markets.
Keep in mind that you must at all times backtest a method for your self.
By no means depend on the outcomes of others, together with me.
To study precisely how I created an automatic program to do the backtests above, WITHOUT coding, learn this tutorial.
