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Profitable Simple Trading Strategy

Profitable Simple Trading Strategy
4.6/5 20 Reviews

I am going to discuss a profitable simple trading strategy which requires discipline and patience and no prerequisite. Follow the rules and maintain your risk-reward ratio.

We will use 3 MA and PSAR.

The setup requires   9 period EMA, 21 period SMA, 45 period SMA and 0.01 PSAR.

Buy rules

  1. 9 Period EMA crosses 21 Period SMA and 45 Period SMA to the up side and the price should be above the PSAR.
  2. The market should be already in up trend (confirm with higher time frame chart, price should be above 45 period MA in higher time frame).
  3. Take stop loss to the previous swing low.
  4. The target is taken manually when the candle closes below 45 Period simple Moving average (MA).
  5. Moving average should be separated clearly when crossover takes place, Do not mess with crossover. You can wait after crossover if they are not clearly separating.
                                                                                      (A) Not clear to enter                                                                                     (B) Clear to enter
  1. You can combine chart pattern if you have knowledge about them if you are novice you do not have to worry, just follow the above rule and you will have good profit.

Illustrations:-

 For understanding purpose I want you to know you my moving average colour. I have taken here the 9 period     EMA (Exponential moving average) which is black colour.21 period MA (Moving average) which is in green colour and 45    period MA which is indigo colour.

Sell setup

  1. 9 Period EMA crosses 21 Period SMA and 45 Period SMA to the down side and the price should be below the PSAR.
  2. The market should be already in down trend (confirm with higher time frame chart, price should be below 45 MA in higher time frame).
  3. Take stop loss to the previous swing high.
  4. The target is taken manually when the candle closes above 45 Period simple Moving average (MA).
  5. Moving average should be separated clearly when crossover takes place, Do not mess with crossover. You can wait after crossover if they are not clearly separating.
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2 Responses to Profitable Simple Trading Strategy

  1. Anonymous May 5, 2017 at 3:54 pm #

    You really make it appear really easy along with your presentation however I to find this topic to be really one thing which I believe I would never understand. It kind of feels too complex and very wide for me. I am taking a look forward for your subsequent submit, I’ll try to get the hold of it!

    • Gautam Roy May 5, 2017 at 4:24 pm #

      keep visiting for more easy and working strategy.

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