In the chart of the beholder!
OK, so today by looking at the chart without having been in front of it all morning, one would say that there were no valid signals, and that it should have been another day on he sidelines. That's what would happen if you back tested this strategy. No trade because the chart doesn't show a crossover. HOWEVER...the reality of things is different.
At the 10 am chart, the moving averages crossed over to the long side. Barely...but it was indeed a cross. At he open of the 10:15 bar I jumped in because all the other confirmation was there. I got executed at 1.9761. Immediately the price moved lower and by doing so eliminated the cross from the previous bar...making it look like there was non signal to begin with.
Needless to say, within the 10 minutes I had been stopped out for a loss of 17 pips. -51 for the day. But that doesn't bother me. If you lose, you lose and that's the name of this game. You move on.
The bigger lesson to get here. Back testing, and applying strategies to charts that are already made can be deceptive. A great deal of bundled strategies that post there results, are based on just that. So don't fall for it. Signals show up and disappear. If you are demo trading, be honest with yourself above all. If you see a signal and took it...admit it. If you were sleeping and woke up and saw a signal..don't say well I would have been in so let me include that in my results. Boosting your pride is a sure way to failure.
Anyway..I am no guru...I just know people who are trading this same strategy and tell me they didn't see the trade. They also happen to be in all the great trades and when they miss one..it is a bad one..so..just don't do it to yourself if you are really serious about finding out if a strategy works for you.
With that I leave you and I will post the chart. Look at the 10 am bar..no crossover...but..trust me..it was there when the 10:15 bar came.
I will talk to you soon.
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