09 Jul Moving Averages Ain’t Afraid of No Bear
Moving Averages Ain’t Afraid of No Bear
July 8, 2022
This week we’re trying to find ways to turn the scariness of the current Bear Market into profitable-ness.
Innocent people have lost over $8 trillion in their retirement accounts so far this year. If any of them need money soon, they’re in big trouble.
Bear Markets put the fear of loss in everyone.
Except for dividends (as we learned in the last Newsletter).
And except for moving averages.
Back on Dec. 10, 2021, I talked about a very simple system on the GBPJPY that only uses Moving Average (MA) Crosses. No stop losses, just moving averages. When all three MAs are stacked on top of each other, go Long. If they’re stacked below each other, go Short.
You can get all the details on this system here: https://www.youtube.com/watch?v=wRxMDMEH-G4&t=3s
Remember, Bear Markets don’t mean we have to lose money. Bear markets just mean the trend is going hard in the opposite direction. If a trader uses a system that follows trends, then a Bear Market is a good thing.
How has this simple system done in bearish 2022? I can’t imagine it’s done well considering it doesn’t use a stoploss.
Here’s the Report trading 1 lot each time on the GJPY on a hypothetical $20k account:
It’s up over $6k, which is +30% on a hypothetical $20k account.
Here’s a sample trade from this year:
On the left side, all 3 MAs were stacked downward so we entered. When the fastest MA crossed above the medium MA, we exited.
It just rode the bearish trend to profitability.
In our next Newsletter we’ll take another look at a way to handle the scary Bears this year.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these sites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, the publisher, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.