Four Ema Strategy

Beginner Questions
1

I’ve developed a 4 EMA strategy using the following exponential moving averages:

9 EMA
20 EMA
50 EMA
100 EMA

Timeframe: 1 Hour

What are your thoughts on this strategy?

3 Likes
2

Using multiple moving averages is a chart set-up which some traders use to confirm a trend which they want to follow with a trade, also to compare different trends on different market charts.

Set-ups like this are a useful and valid starting point when designing a strategy.

3

It’s missing RSI & MACD. Other than that, it backtests great.

4

Thanks you

5

Thank you bro

6

Very similar to the system I use -
I trade low timeframes 5mins - 1min confluence with Keltner (shift/multiplier of x1). Keltner keeps you out of sideways ranges if set to multiplier x1.
IE take trade when low EMA 9 or 8 (I use 8EMA) is accelerating out of channel.

1 Like
7

Yeah yeah I have seen people make good gains from strategies based on this idea.

8

Thank you so much

9

Thank you.

1 Like
10

There was someone that made a lot of money off it. Idk if it was luck or crazy skill.

11

Which strategy? Is a list of 4 moving average a “strategy,” these days? :open_mouth:

2 Likes
12

Ooh. :open_mouth: My strategy also uses EMAs, but I’ve never tried using more than 2. :open_mouth: Interesting though! I’d love to see how you use this in action. Do you plan to create a trading journal of some sort? :smiley:

1 Like
13

Interesting strategy. How’s it working out for you so far?

14

Yes me too, only one EMA :slightly_smiling_face:

15

If you have good method, just tell me the rule, I can compose an EA for it. Using EA, you will know the real result by back-testing it.

Many methods are good visually, when it put in strict trading environment, it fails. :slight_smile:

Btw, I am using 3 EMA in one of my strategies. Slow MA for trend identification, fast and medium MA for marking support and resistance. On certain instrument, can be trade by identifying golden/death cross.

1 Like
16

Actually not a bad system at all-tweaking a bit I use on one hour chart is a 50simple ma with a 5 exp but also incorporate two other indicators,Atr,and average directional (adx) if adx trending up i call trend power,then look at other time frames,all go take a trade the atr tells me helps me work out how many pips to get-more into it but just think if trend is up or down on ma do not go against it,just wait-anyway Some days do ok others not,never forget the news comming out can hurt one -cya happy trading simple systems do work

17

I will develop a trading bot using this strategy in Python, but I am confused about what strategy with less false signal to develop

Could you share any tips?

18

Thank you so much

19

I don’t know about anyone specific, but if you check the accuracy of this sort of strategy, I would say you can get a good trade in 70% of the times.

20

He’s a member on here somewhere. He had an identical strategy, over 90% win rate, was up over $100k when I last saw. I think he may have started a hedge fund with the 4 EMA Strategy.