BrendanW98

EMA Crossover Strategy

EMA Crossover Strategy

This strategy will enter a long trade when the 21 EMA crosses over the 55 EMA and both EMAs and the close price are above the 200 EMA (long-term trend).
It will enter a short trade when the 21 EMA crosses under the 55 EMA and both EMAs and the close price are below the 200 EMA .

It will exit a long trade when the RSI crosses under from overbought and indicates that the uptrend could be coming to an end.
It will exit a short trade when the RSI crosses over from oversold and indicates that the downtrend could be coming to an end.

Backtesting shows that it works best on:

30 MIN:
  • SYMBOL - PROFIT FACTOR
  • AUDCAD - 1.126
  • EURJPY - 1.12
  • EURNZD - 1.04
  • EURUSD - 1.65
  • GBPAUD - 1.27
  • USDCAD - 1.08

1 HR:
  • SYMBOL - PROFIT FACTOR
  • CADJPY- 1.23
  • EURNZD- 1.166
  • GBPJPY- 1.23
  • GBPUSD- 1.282
  • NZDJPY- 1.246
  • USDCHF- 1.344

3 HR:
  • SYMBOL - PROFIT FACTOR
  • CADCHF- 1.975
  • EURGBP- 1.776
  • EURNZD- 1.911
  • GBPAUD- 1.364
  • GBPCHF- 1.311
  • USDJPY- 1.162
  • XAUUSD - 2.00

As always, this strategy does not guarantee you to achieve profits and you should always use confirmations before entering a trade.
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Comments

Nice strategy. However, what will happen if a Short signal is given and then RSI stays in the overbought zone for a prolonged period or vice-versa
+3 Reply
BrendanW98 AkmeAnalytics
@AkmeAnalytics, It would make a potentially short-lasting short position, but most of the time RSI isn't in the overbought zone for a crossunder signal to be given.
The strategy isn't perfect and is in V1, there's room for improvement. Will try and look into overcoming this though.
Reply
BrendanW98 BrendanW98
@BrendanW98, Scrap that, if a short positions entered while RSI was overbought, the short position wouldn't be closed until there is a crossover in the oversold area (i.e. RSI goes down to oversold and crosses back above that level).
Reply
Does repaint? :)
Reply
BrendanW98 davidsnote2
@davidsnote2, Not sure what you're asking bud
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