Simple 5/8 EMA System:

Hello,

I found a very simple system on another trading forum site that I would like to share:

SYSTEM:

  1. Enter long when the 5 EMA crosses above the 8 EMA.

  2. Enter short when the 5 EMA crosses below the 8EMA.

I wait until the bar closes to enter a trade.

This strategy looks most promising on the Daily chart.
The more volatile the currency, the better.

Strategies for stops/profit targets can be left to the imagination.

I like to use a fxed stop and trail my profits.

I don’t know how to post charts- but it isn’t necessary- the system is simple enough that it’s self-explanatory.

Any ideas on how to improve this system are welcome!

Happy Trading

I demo’d this for a while; you get in late and be sure to get out when the price stalls or the candles are short - no momentum.

Are you saying that this method gets you in too late or that it’s a good to get in the trade a little late?

All moving average crosses get you in too late. And if the pair is ranging, then you might as well toss up the white flag.

great idea but must trade religiously through draw downs and u will make money overtime but on higher timeframe like 30 min charts

There is a greatly expanded discussion of this strategy on that other forum. The 5ema is set to Close, the 8 to Open & I only use it on the 4H and D. Simple and efective.

How many pips you pullin on average per trade? Just curious.