Two Instrument Strategy
Posted: Fri Apr 21, 2017 6:59 am
Prerequisite for trade
1)
Instrument 1 > MA of Instrument 1
Instrument 2 < MA of Instrument 2
or
2)
Instrument 1 < MA of Instrument 1
Instrument 2 > MA of Instrument 2
If we have 1) or 2) we can enter into new trade
If Instrument 1 CrossOver MA of Instrument 1
Open Long in Instrument 1
Open Short in Instrument 2
If Instrument 1 CrossUnder MA of Instrument 1
Open Short in Instrument 1
Open Long in Instrument 2
Optional exit
3)
Instrument 1 > MA of Instrument 1
Instrument 2 > MA of Instrument 2
or
4)
Instrument 1 < MA of Instrument 1
Instrument 2 < MA of Instrument 2
The Strategy was revised and updated on January 21, 2019.