I've argued that you don't have to be a genius trader in order to make money in the markets. In fact you can make money with remarkably simple trading systems. In this article we'll go over one system that has only 1 entry/exit trading rule. Yes you read that right, ONE. Here's a little preview of the results for this system.
Toward the end of the article I present a four-year backtest of this system on the four most liquid currency pairs EUR/USD, USD/JPY, GBP/USD and AUD/USD. Here is the simplest system on this entire website.
Ten-Month Moving Average System
There is only 1 entry/exit rule. If price closes above the 10-month simple moving average, you buy. If price falls below the 10-month moving average, you sell. This is a Stop and Reverse System (SAR). Once your long gets the exit signal (price below 10 SMA) you close the position and initiate a n…