Simple 5 EMA High/Low scalping strategy

Someone tried to use this strategy into an EA. Just wondering if anyone made one that is consistently working and has a high win rate?

Hi i read this strategy last week and i practised it on my demo account.
And this is the result of today my live account.
Its really great work.


Thanks Danny, your idea is nice.
So I decided to write a EA to verify it, and did a simple update for this logic.
1, EMA_high or low is not enough to make sure the position is right to open, so it need a ema with period 15 price is close to above or below it.
2, 5 min is good to generate many trading opportunities but also has some wrong position, so I use the ema period 15 on M15 chart, at least, once it found a position which has two charts to verify its valid.

but I don’t do any stop loss logic in this EA, and it works in 2013, but very bad before it, maybe the data on MT4 is not well


When you open trades like yours with lots of 1 then the profit margin is not the greatest to be honest hey, i mean what happens if your trade goes against you and do you enter a stop loss, does your wins actually exceed your losses?
Say for instance you do these trades as per your post and you have one trade going wrong and you decide to stop it at $1oo as an example, this means you are now almost $70 out of profit and have to make up what you have lost before you can make any profit again.

I saw the potential on this system.
But look at the picture below



How to avoid trade like this? The first green candle breakout and close outside of 5EMA. Expect the next candle would go short, but no, price went up.

You will see if you back test manually how indicators end up lagging, they show you and entry and by then it is too late or if you get in it shows you too late to exit

Why dont you try PA or Fib trading there are a few of us on there and everyone is enjoying it let me know I will leave you the link to follow

yup I learned PA and doing fine. But that question bother me and I hope anyone can solve it for me…

Wish I could but wrong person to ask

As everybody on here will tell you no system, indicator, template or anything is 100%, all you can do is make sure when you have potential trades that your losses are covered by the winners

What do you do if there is a HUGE candle right before the potential set up? Right now I’m looking at 15 pip candle on the euro and the next candle is probably going to open above the 5 EMA high. Should I sell? It seems kind of risky.

Note: In the time it took me to write this I noticed that the next candle is going up, so I guess this means if you see an abnormal candle (12+ pips or so) don’t trade the next one. TOo risky.

Photo of risky trade and what happens if you take a trade after a candle that is more than say 12 pips.


Hi everyone… I tested this system last night and had a 100% success rate.

AussieForexM’s Profile @ Forex Factory (Only look at trades from Dec 17, 2014)

I think it still needs a few tweaks, but so far so good.

Hello everyone,

I found this thread last week and yesterday I decided to build a Matlab code to backtest the strategy. The thing that I added is that my Stop Loss, Take profit and moment to trade are a function of the average difference of the EMA Low and EMA High of the previous 5 periods. This seems to work pretty well for the months of November and December. For the trades that have a loss, I encouter the same problem as stated in this thread: strong trends.
My question now is: is there a simple indicator that tells you wheter the chart is in a strong trend? I could for instance disable trading when the last 2 or 3 candles are red/green, but I want to be more precise.

Any suggestions?

Thanks a Lot Danny.Today I Booked a profit of 15 Dollar(5+5+5) in 1st Attempt in EUR/USD pair under 5M time Frame. I Suggest Use 9 RSI also with this startegy for better result
Amazing Strategy.:):):slight_smile:

I have been testing this system on the 1 hour chart and have added the MT4 volume, MT4 accumulation/distribution indicator with a 14 SMA of the Close applied to it. If a Bull candle opens below the 5 EMA LOW or a Bear candle opens above the 5 EMA High, I only take the trade if the 14 EMA and Accumulation/Distribution lines cross. I also note the volume e.g. High volume bar on bull candle may indicate selling.

This system was great.Thank you Danny.:35:

I thought we should focus on candlestick pattern for this system too, right?. It’s kind of indicate for trend reversal in short term.

Ps. It 's great system, I can make many pips from it. Thank you Danny

Try ECN broker. They have less than 1 pip spread(sometime zero) in all major currencies.

What are this extensions .tpl and .ex4

In volatile time it may not work… i think… is it right?

can you just add only one condition
avoid sell if 3MA high is above BB top line
avoid buy if 3MA low is below BB bottom line