🤯 “Wait... That’s It? That Can’t Work... Can It?”
There’s a paradox in trading that most people never accept:
The more complex your system is, the more likely it is to fail in real life.
Sounds counterintuitive, right?
You’d think advanced indicators, AI algos, and 20-monitor setups would give traders an edge.
But guess what?
Most consistent traders—quietly crushing it year after year—use systems so simple, you’d think they were joking.
Let me show you one.
It works.
And it might change how you look at trading forever.
🎯 The Problem: You’re Over-Optimizing Yourself Into Oblivion
Let’s be real.
Most traders:
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Obsess over backtests
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Stack indicators like toppings on a bad pizza
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Tweak parameters endlessly
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Blow up when the real market disrespects their "perfect" setup
But markets aren’t mechanical. They’re messy, noisy, and often irrational.
A system needs to survive that. Not just win on paper.
That’s why simplicity wins.
🧠 The 2-Line Trading System That Actually Works
Here it is.
No indicators.
No magic.
No “AI.”
Just two price lines.
✅ The 2-Line Moving Average Crossover System:
Buy when:
The 5-day moving average crosses above the 20-day moving average.
Sell when:
The 5-day crosses below the 20-day.
That’s it.
No RSI.
No MACD.
No Fibonacci.
No moon phases or astrology.
😳 “Wait… That’s Just a Crossover. Everyone Knows That.”
Yup.
Everyone knows it.
But almost no one has the discipline to actually follow it.
Why?
Because:
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It’s boring
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It doesn’t “feel” intelligent
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It sometimes gives late entries
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It doesn’t always win
But here’s the kicker:
When applied to trending markets with risk control, this system has beaten 80% of retail traders over time.
📈 What Makes It Work?
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It Follows Price, Not Predictions
It doesn’t try to guess. It reacts. That’s huge in chaotic markets. -
It Cuts Offside Trades Quickly
Whipsawed? Sure. But also never wrecked by catastrophic losses. -
It Keeps You in Winners
Some of your trades will ride trends way longer than you'd expect. -
It’s Easy to Automate
Simplicity = better execution = less emotional interference.
💥 A Real Example: Apple (AAPL)
Let’s say you're applying this system to $AAPL on daily candles.
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Buy signal: 5-day MA crosses above 20-day on Jan 10
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Price: $160
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You ride it up
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Sell signal: 5-day drops below 20-day on Feb 22
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Exit: $178
A 11% return in 6 weeks.
No magic. Just following two lines.
You’ll lose some. But over time? It adds up. If you manage risk.
🧘 The Real Secret Isn’t the System—It’s the Execution
Most people don’t fail because their systems suck.
They fail because:
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They overtrade
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They override the system emotionally
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They abandon it after 2 losing trades
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They change the rules mid-run
The simplest system will beat a genius-level one if you can actually follow it.
That’s where the real edge is: consistency.
🧠 Unconventional Wisdom: Complexity Is Often Ego in Disguise
Ask yourself:
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Are you adding complexity to feel smart?
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Or because it adds actual edge?
“If you can’t explain your system to a 10-year-old, it’s probably not going to survive a bear market.”
🛠️ Want to Try It? Here’s a Barebones Checklist:
| Step | What to Do |
|---|---|
| 1 | Choose a liquid stock or index (AAPL, SPY, etc.) |
| 2 | Set up 5-day and 20-day simple moving averages |
| 3 | Backtest it on daily candles |
| 4 | Define your position size and stop loss rules |
| 5 | Follow it for 3 months with zero emotion |
| 6 | Review your trades with brutal honesty |
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