50 period SMA entry on the hourly

I want to test a strategy on the hourly for USD/JPY, US2000 and Gold where you enter on a 50SMA cross. The idea is that you enter in the direction of the most recent price move and aggressively bring the stop up to break even. Most of the time it’s going to be ranging so your stop will be triggered often but you should be able to get away with very small losses most of the time. Then, when price begins to trend again you can get a really good risk reward.

Rules

  1. set alert on the 50 SMA 1 hour
  2. set the stop to 1xATR 1 hour
  3. (optional - if you have time) drill down into the 5 minute to find a reversal
  4. 1 hour after entry move the stop up to break even
  5. re-enter if stop is taken out and there is a good reversal.
  6. Sell on first close below 50

Implementation notes

  • You can set an order at the end of the night to get filled while sleeping but keep in mind stop has to be big.

  • This will be better when you can size up because you can take profits at 3x or something

  • keep moving stop up to be a bit below the 50 in case of sudden change.