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The Shady Lady

The Shady Lady is a mechanical FX system which makes reasonable profits in the long term.

Technical Indicators

100 SMA (red)
200 SMA (blue)
RSI (10)

Entry Rules

During an upward SMA cross-over, buy when the RSI moves above 70% - shaded area

During an downward SMA cross-over, sell when the RSI moves below 30% - shaded area

Exit Rules

Sell/Buy when the RSI moves below/above 50%

Risk Management

Use a 50 pip Trailing Stop Loss with a 200 pip Profit Target

This gives a 4:1 reward:risk ratio

The system works best on 1 H chart using AUD/USD, EUR/USD, EUR/GBP, and GBP/USD

The % win rate will be low but a few very profitable winning trades will compensate for a larger number of low loss making losing trades.

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