Tuesday, October 7, 2008

Here I will give you a description of the simple tactics from Rayon Jones

The Simple Method of Trade

I have told a lot about the effective and ineffective methods in respect to the simple logic of the tradable process. The next method is probably the most simpler and logic. Besides not many systems and methods give the results which you will see on the next pages.
This method is based on the trends and on the correction. Here are no other rules of way out except the way out at the situation of back drive and use of protective stop. If the position on some instrument is long it would stay long until the signal of turn and creation of short position appear or the signal of initialization of stop to prevent losses. The results for 8 markets are below.
The method which gives this numbers is surprisingly simple. The rules are following:

Buying:

Average on closing calculated on “X” – daily period must be higher than similar average “Y” days ago.
Price at the close must be less than similar price “Y” days ago.
Price at the close must be higher than the price on closing “Y+X” days ago.

If the all 3 conditions have been met one should buy at closing the next day.

Sale:

1. Average on closing calculated on “X” – daily period must be less than similar average “Y” days ago.
2. Price at closing must be greater than similar average “Y” days ago.
3. Price at closing must be less than price on closing “Y+X” days ago.

If the all 3 conditions have been met one should sale at opening the next day.

For example, if “X”=20 and “Y”=3 so the 20- daily average on closing must be greater (for sale) than this average calculated 3 days ago. It means that 20-daily average on closing is rising.

Then it is necessary that today’s price at closing was lower than the price at closing 3 days ago. It helps to define whether recoil before entrance in a market will not happen. In the end it is necessary that the price (even if it is lower than 3 days ago) was also higher than 23 days ago. This is a check-up of presence of rising sliding average. The method can work until the signal of turn will appear or if the market will go too far against the position without a signal of the turn.

That is all. Three very simple, very logical rules gave test results which indicated above. Indices are so imposing that it is not necessary to carry out more in-depth analysis to understand whether use it or not. The only question is which are “X” and “Y”? For all practical purposes “X” can be any quantity which would reflect ascending action of long-term trend. “Y” can be any number which reflects short-term recoil. Some values of “X” and “Y” will give more encouraging indexes in comparison with other values. But, as a rule, if the numbers get to the logic of the method they should give stabilized statistics.

Other Trader Searches:

forex systems managed forex accounts forex strategy easy forexautomated forex robots forex managed accounts

1 comment:

  1. I would like to suggest that you go with the highest ranking Forex broker: AvaTrade.

    ReplyDelete