Red Light Green Light

I had (at time of writing) been using this system for 6 months. The system started with just the Moving Average (MA) indicators and following price action. I added other indicators to help hedge my trading by showing me when a possible trend reversal or a breakout was going to occur. After much testing, I found success by keeping it simple. I paired up an EMA with DMI.

The system uses EMA with a period of 13 (Green up/Red down). I wanted an EMA that would be more responsive to recent price action. The two directional indicators (DI+ (Green/green) & DI-(Red/red)) of DMI are used in conjunction with EMA to establish your Entry and Exit points.

Chart Setup
Chart: Any
TF: Any

Indicators: EMA13, ADX13
Set a level of 21 on ADX13

Entry Rules
Long Entry:
Price is coming up from below EMA13. Candle Closes above EMA13

Short Entry:
Price is coming down from above EMA13. Candle Closes below EMA13

Exit Rules
Long Exit:
Candle Closes below EMA 13
DMI 13 DI+ < DMI 13 DI-

Short Exit:
Candle Closes above EMA 13
DMI 13 DI- < DMI 13 DI+

Stop Loss
Set your Stop Loss to the last swing high or low.

1 Like

Is this been back tested btw?

Back tested (closed bar to closed bar on a one minute chart) and traded live in and by a group/forum

Ooohhh! :blush: Thanks for sharing this. :smiley: Haha. The title immediately caught my attention cause it reminded me of that Korean movie. :sweat_smile: But, do you plan to also post trades that you’ll be opening with this system? :blush:

I also mainly use MAs for my strategy and it’s interesting to see the tweaks you made to your approach. :blush: if you don’t mind (and only if you’re comfortable sharing), how has this system been performing? :blush:

The system is a good one and many followers use it. I use something a little more advanced myself but was very happy using this one for a long time. It was developed in 2013! So it has sure been around the block


That’s great! :smiley: I love how you shared this with the community. :blush: Thank youuuu!

There is a video attached to another strategy I shared some time ago. Possibly on another website if not here, but available on YouTube too. Live trading on that video recording.

Hi, are you from Singapore too?


No, I am originally from UK but I live now in Ireland