The moving average is probably one of the most common indicators when it comes to trading Forex and other financial instruments. It is present in almost every chart analysis tool that you will see online. Some platforms even provide the users with pre-built templates that include different moving averages.
There are plenty of strategies that involve using one or even 4 moving averages, for this reason, today we will discuss one of the most common trading strategies that traders use which is based on the crossovers of 3 different simple moving averages.
To make the backtesting process more reliable, we are going to use an expert advisor which was designed based on the trading strategy mentioned in the following video.
Building a strategy is just the beginning as trusting it to take care of your investment is a big step to take. That’s why most traders will backtest their EA for a couple of months before letting it hit the live markets.
Backtesting involves various strategies such as running your strategy against a chunk of real historical data and evaluating how it performed, helping you to filter out any issues before they end up losing your real financial investments.