30 SMA price action

The principle of this strategy is KISS (keep it simple and stupid). And remember trend is your friend. This strategy uses daily charts and can be applied to any currency pair. The indicator here is SMA. Most times a 30 SMA is good.

Entry/Exit: You basically reverse your position whenever the price crosses the SMA line. For example, you would enter a long position when price crosses SMA from below and you would sell when price crosses SMA from above. It sounds awfully easy that you buy low and sell high. But in a ranging market when price oscillates, you might sustain many small losses. This is a price that you have to pay in order to catch a big trend. Therefore money management is very important here. You don't want to lose all your capital and be out of market when a trend starts.

Money management: Put 2% of your account into each forex trade. You should put a stop loss so that you'll only lose 0.5% of your account or 25% of your initial capital, if you are stopped out.

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