Golden Cross

The Golden Cross strategy uses two moving averages to identify trend reversals.

The logic behind this strategy is relatively simple. However, we have put a couple of additional money mangement touches in it. Notice that we use a regular Stop Loss in combination with a Trailing Stop Loss. This adds to the strategy's ability to close the current open postion and open a new position in the opposite direction should the two moving averages cross back again before reaching the Take Profit level.

Indicator description: Moving Average, Exponential
The Moving Average calculates the average value of the last x number of bars. You can chose which values on the bar to use (Open, high, low, close, or a combination of them). In this template strategy we calculate the average exponentially, which means we contribute higher weight to the most recent bars and less weight to the more distant bars. The concept of the Golden Cross / Death Cross is that the Moving Average that looks back only a few bars will react faster to price movements than the one look further back in time. That way you can identify trends in the price movement while also identifying specific entry and exit points - trade timing.

Strategy Description
This strategy seeks to capture larger market movements - or trends. The strategy opens a single position at the end of the current bar, when the short Moving Average (MA8) crosses the long Moving Average (MA20). When it crosses back, the position is closed and a new position is opened in the opposite direction. As the Take profit level is set to 100 pips, this strategy takes advantage of larger market movements often over several days. The strategy will keep you in the market a lot in search for the next big market movement.

Have more questions? Submit a request