EMA X-over

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1

EMA X-over Strategy

I have been reading multiple forum threads and testing different strategies in the past few months. This has given me some really good insights.
I would like to share a strategy I tested manually running on forex tester, and this created a 80% profit in 2,5 months (108 trades) with a winning rate of 75%. I tested on a 30m time frame on xauusd. This sounds quite promising that’s why I would like to test this even more, on different time frames and pairs.

Advantages is it is simple and it could be automated.

Entry condition:

  1. crossover ema3 ema14 (I use EA MA_Crossover_alert made by Jason Robinson)
  2. RSI must not be ranging (ranging: most of the time ranging occurs between the rsi levels 42 and 58. prior n bars with rsi between 42 and 58 … for an EA the amount of days could be a variable input)

Entry:

  1. High previous bar + 1.1 pip (short is low previous bar – 1.1 pip)
  2. If entry condition 1 is not met then enter high previous bar + 1.1 pip (is the same as 2 bars after entry condition) (maximum 3 bars later otherwise no entry)

SL:

  1. Low previous bar -1.1 pip (short is high previous bar + 1.1 pip) with a minimum of 10pips.

TP:

  1. First target is 1:1 (= SL size) (50% take profit) (SL is adjusted to entry price)
  2. 2nd target is 1:2 (= 2x SL size) (25% take profit)
  3. 3rd target is a runner close at next crossover (25% take profit)
  4. EXIT strategy: open trades are exited on the close of the 5th bar after entery.

MM:

  1. Maximum 1-2% risk

SUMMARY
As long as markets are not ranging there is some good pips to score with this system. Using the entry on prior bar high and checking if the rsi isn’t ranging helps shake out lots of losing trades. The down side is you do mis a few good trades as well.
I welcome your response and your experience with this trading strategy. If there are some good results it would be worth automating this EMA X-over strategy (unfortunately I am not a programmer). If someone is willing to give it a try … your welcome! (Let me know and I will give some help).

I wish you lots of pips.

xauusdm30.jpg700×511 37.9 KB

2

Interesting. Similar to my system but it uses different parameters for the EMA. Do you have the EA for this so I can automatically backtest it?

3

Hey haho! This is a pretty sweet looking system! You should enter it to Robopip’s contest: 301 Moved Permanently.

4

No problem, I use a EMA 4 and EMA 14.

5

how long have you been using this system? i have also been trying out trending systems in recent months and they all generally did well in july… that month seems to be unique in that sense

6

Haho, do you use this system only on the XAU/USD? Or is it possible to trade it on other currencies aswel? SO basically you wait for the EMA’s to cross and a candle to close either above or below and on the next candle open a trade? AM i correct in saying this? Looks interesting I will like to give this system a go for a bit… Almost the same as the one I am using now but on the ema’s I use it is much better to use it on the daily or 4hr charts though

7

Hi again Haho

I see in the first post you said you use 3 and 14 ema and then in your post yesterday you say 4 and 14 ema, which one is it you use and also do you have the EA for the cross over that you are using…? Can you maybe post it on here? As looked for it online but not finding the right one…

8

sorry … I use a 4 and 14 EMA, and have been testing this system only on XAUUSD.

9

I would first test an other currency first, but yeah you can give it a try.

The crossing is only a potential setup. If rsi is not ranging and the next candle passes the previous high (for buy) with a pip then you can enter a trade. This shakes out a lot of whipsawing trades.
I should test this on a 4 hour chart, disadvantage is far less trades.