Since the Chartmaster trading algorithm first became available to individual traders, I have learned just how different we all are when it comes to our preferences and trading styles.
I am rather loud and proud about the successful results that the algo can achieve on usdzar, which is largely considered an account killer for most traders. The truth is that usdzar is my personal preference and I like it because of the high performance and low risk relationship that my strategy offers on this pair. It was also a personal challenge for me to conquer one of the toughest pairs in the market. Unfortunately with the volatility that this currency pair moves, many traders are left on the sidelines as their account balances are too small.
Trading on usdzar using Chartmaster requires a starting balance of no lesser than $1000 and this is to make sure that your losses are not more than 2-3% of your account. Essentially it is for good risk management because of the type of trading strategy used.
So what is the big deal right now?
I've spoken to many traders and found the following:
1. A high number of traders prefer to start with a $500 trading account
2. Swing trading on the lower time frames (M30 - H1) is the favorite
To summarise, most traders prefer to start off with a $500 account and see regular trades with the account growing at a reasonable rate.
With this in mind I have started testing different moving average crossover strategies that are published online to see how well they work (and if they work). So far all of them have failed a test over the last 3 years, blowing the account or landing up with a massive draw down.
I then went on and tried a few of my own and came up with really good growth that eventually landed up in draw down, not as bad as before but still not profitable.
Do you have a moving average crossover strategy that you would like to test? Please share your ideas with me in the comments and specify the moving averages, currency pair and time frame respectively.
I'll be running a few more tests and share the results here with you.