Saturday, August 17, 2013

Equity:882.76 - New theory

New strategy is to try to predict and enter the trade before the 20 SMA crosses the 50 SMA. This is likely to happen when the 2 SMA lines starts to converge towards each other after spending some time moving apart (like the Leaf shape).

Entering the trade early provides an advantage. The Stop Loss, which I usually set at the previous high/low, is smaller. And the potential to have a bigger profit is also bigger.

Since many people follow the strategy of entering the trade when one SMA line crosses over the other, I hope this new theory of mine will be able to beat the market.

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