My strategy for FTSE and other indices

[addisor]

My first post, be gentle.
Just opened an IG account to trade CFD's. At the mo I am only trading indices, and mini contracts at that. been buying 0.05 contracts and have had success and loss, no surprise there. Then decided I'd better start on a strategy, did some research and came up with this.

Use a chart:
Set Exponential MA10, normal MA20 & 100 for trends and look to trade if EMA10 crosses MA20. To assist this I have added RSI, using the 50 line as a trigger to trade if complemented with a SMA crossover. I always have a 30-50 point stop loss in and an open limit. Can anyone help to improve this, with simple advice.

thanks rob

 

[bfirth]

dont think you need to add lots more simpel is good,also tradeing with a demo account first is best, if you cant stay + on a demo account real money wont work either, after that spend 8 10 hours a day watching price action for as long as it takes

 

[whizpar]

You might want to add support and resistance lines. As there physological areas in most markets where price reacts. This thread has a good amount of info on looking for potential trading set-ups near S/R, it is quite a long read - but it is worth it. http://www.trade2win.com/boards/general-trading-chat/32991-potential-setups.html


I agree with bfirth the simple systems are the best systems.

Happy Trading

 

[whizpar]

Hi Addisor,

Another link that talks about support and resistance Forex Support and Resistance Trading: Chart Plotting System

 

[addisor]

thanks for that, great explanation of S & R. in summary, it appears that dependent on levels of Support or resistance the market will not bust these threshold anytime soon?