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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