Simple online trading strategy
This simple profitable online trading strategy is good for beginners and you can use it for free.
I practice it on NASDAQ emini (NQ), but it works on many other markets and timeframes.
Timeframe is 3 min.
1)Exponencial Moving Average (EMA) period 200. This indicator defines trend. If the price closes over the line of EMA 200, trend goes up.
If the price closes under the line of EMA 200, trend goes down. If trend is rising, you will open long positions, if trend is falling, you will go short.
Allways trade in the direction of tren, because “trend is your friend”.
2)RSI indicator period 10 (RSI).
3)Parabolic SAR (PSAR) for trailing Stop Loss
Exit long position if RSI is crossing line 70 down, or RSI is 8 bars over the line 70.
Open short position if closing price is under EMA 200, and RSI is crossing line 50 down. Set Stoploss on the PSAR, or one tick over the “swing”. If price will fall, move your stoploss to next value of PSAR.
Exit short position if RSI is crossing line 30 up, or RSI is 8 bars continuously under the line 30.
In example below you can see situation on NASDAQ e-mini market on 10/03/2011
Profit 21 points in one hour, it isn’t bad.