I want to create a trading strategy that uses moving average crossovers to catch trends on EURUSD.
Great choice! Moving average crossovers are a classic trend-following approach. Let me help you build this strategy.
A few questions to refine your strategy:
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Which moving averages would you like to use?
- Simple Moving Average (SMA)
- Exponential Moving Average (EMA) - responds faster to price changes
-
What periods for your moving averages? Common combinations:
- Fast: 9, 20, or 50 periods
- Slow: 50, 100, or 200 periods
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What timeframe will you trade on? (M15, H1, H4, D1?)
Let's use EMA with 50 and 200 periods. I'll trade on the H4 timeframe for EURUSD.
Excellent! EMA 50/200 on H4 is a solid "Golden Cross / Death Cross" setup used by many professional traders.
Now let's define your entry rules:
For a Long (Buy) entry, when:
- EMA 50 crosses above EMA 200 (Golden Cross)
For a Short (Sell) entry, when:
- EMA 50 crosses below EMA 200 (Death Cross)
Would you like to add any confirmation filters? For example:
- RSI above 50 for longs, below 50 for shorts
- Wait for a pullback before entering
- Volume confirmation
Yes, add RSI confirmation. Only enter long when RSI is above 50, and short when RSI below 50. Use RSI period 14.
Perfect! RSI confirmation will help filter out false crossover signals.
Now let's set up your risk management:
- Stop Loss - How many pips, or use ATR-based?
- Take Profit - Fixed pips, or risk:reward ratio?
- Position Size - Fixed lot size or risk percentage?
What are your preferences?
Use 50 pips stop loss and 100 pips take profit. Start with 0.1 lot size.
Excellent! That's a 1:2 risk-to-reward ratio - very sensible for trend following.
đź“‹ Strategy Summary
Golden Cross RSI Momentum Strategy
| Component | Configuration | |-----------|--------------| | Instrument | EURUSD | | Timeframe | H4 | | Indicators | EMA(50), EMA(200), RSI(14) |
Entry Rules
- Long: EMA 50 crosses above EMA 200 AND RSI > 50
- Short: EMA 50 crosses below EMA 200 AND RSI < 50
Risk Management
- Stop Loss: 50 pips
- Take Profit: 100 pips (1:2 R:R)
- Position Size: 0.1 lots
Ready to generate the trading code? Click "Generate Code" when you're satisfied with the strategy, or let me know if you'd like to make any changes.