EURUSD Exponential Moving Average Crossover with Stops

Summary

The document describes a four-hour EURUSD crossover system using exponential moving averages with periods 2 and 35. A cross above triggers a buy and closes a sell; a cross below triggers a sell and closes a buy. It also specifies stop-loss, take-profit, and trailing-stop settings, though the prose and backtest table disagree on the take-profit value: the description gives 200 while the table lists 300. The moving-average parameters can be changed.

A historical test covering June 2013 through February 2014 reports net profit of 4,482.40 from an initial deposit of 10,000, a profit factor of 1.52, relative drawdown of 24.42%, and 45 trades. Only 14 trades were profitable, or 31.11%. The document says the test used opening prices only and provides no modeling-quality figure, which limits confidence in the results. The short sample and absence of out-of-sample evidence mean these figures do not establish that the approach will generalize.

Key ideas

• The system trades EURUSD on a four-hour chart using a 2-period and 35-period exponential moving average crossover.
• An upward crossover opens a buy and closes a sell, while a downward crossover opens a sell and closes a buy.
• The listed stop and trailing controls include a 30-unit stop loss and a 60-unit trailing stop.
• The prose lists a take profit of 200, while the test table lists 300.
• The reported historical test has a 24.42% relative drawdown and a 31.11% winning-trade rate, with limited modeling detail.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.