All of us know that the trade system on crossing of moving averages “is not tested”. It means that through any time this system won’t gain money irrespective of you will choose what parameters. We won’t go deep too into this theme as I hope that the reader understands that I mean. You can take any period in the history and choose two moving averages, to receive trade system on crossing of moving averages which will be favorable. It is, by the way, rather a fertile field for numerous “sellers of dream”.
The problem consists in that there is almost infinite quantity of combinations of parameters of moving averages, and only the few will probably work on the chosen kit of the historical data. You change a data set, and other combination of parameters will work. Always there will be some kits of parameters which will show good results, but actually you will never know, which these some parameters while price action any more won’t end. It does the given information almost useless for practical application.

How it concerns to that we are going to discuss in the given clause? Now I will make original transition which will seem to many people not absolutely logical. I can’t prove about what I am going to speak, and simply I am going to declare the opinion, being based on my knowledge of mathematics. Though I agree that, unconditionally, there is a technics for closing of all position at once which will bring more than profit if it to use separately, rather than any technics of crushing of exits. However, I am convinced that you never can foreknow, what is technics before reception of the definitive fact, in the same way as well as at a choice of parameters of Sliding averages.

Now, let’s think a little. The basis to refuse the approach of a separate exit from transactions is connected by that mathematically it isn’t as effective as the approach of a single exit. But researches which “prove” it, usually use certain assumptions at research carrying out. There the certain kit of the historical data undertakes, and then various methods of crushing of positions are tested and compared to one of the technician, providing a single exit. I don’t discuss this mathematical supervision. But how it corresponds with a trading reality? I consider that it has no special practical value.

If I don’t have any method to learn, how the markets change, and to present various market conditions what separate technics will be optimum is approximately the same that attempt to use system of crossing of moving averages. Traders often discuss various ideas of that the market can be at present in various “stages” – for example, to develop a trend, to move sideways, doing it with increase or without variability increase etc.

For those who want to participate in forex trading should start from learning the basics of this market to make sure you do not have problems with this industry.

There is another option – you can hire professional traders to do this job for you – read more about forex investment here. Also make sure to search for the knowledge in a good forex book.