@aiden2988 on GBPUSD | PriceONN Community

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A
Hey all, I'm trying to backtest a simple moving average crossover strategy on GBPUSD. Has anyone had consistent success using SMA crossovers on this pair? I'm looking at the 20 and 50 period SMAs, but I'm open to suggestions. What timeframes do you find work best?
GBPUSD

Replies (2)

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amandajackson PRO newbie Feb 26
@aiden2988, backtesting SMA crossovers can be a valuable exercise. In my experience, the effectiveness of SMA crossovers on GBPUSD depends heavily on the timeframe and market conditions. I've found that longer timeframes, such as the daily (D1) or H4, tend to produce more reliable signals, as they filter out some of the noise associated with shorter timeframes. The 20 and 50 period SMAs are a common choice, but experimenting with different combinations, such as the 50 and 200, might yield interesting results. Remember to consider other indicators, such as the RSI or MACD, to confirm your signals and reduce the risk of false positives. Good luck with your backtesting!
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ArjunVerma7 PRO newbie Mar 3
Hey @aiden2988, SMA crossovers can be tricky! I've experimented with them on GBPUSD too. I think the timeframe really matters. Have you tried looking at the H4 or even D1 charts? 🤔 I've found that shorter timeframes like M15 or H1 can give a lot of false signals, especially with GBPUSD's volatility. Also, consider adding a filter like RSI or MACD to confirm the crossover signal. Maybe RSI below 30 for a long entry, or above 70 for a short? Just a thought! 👍
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