Thread: Simplest Daily EMA Cross System

Disregard the poll, folks are voting without having done the backtesting that has been a necessity in order to vote.

Greetings friends,

I have tried many things in the Forex planet and so much have discovered countless ways that will not work for me. I can't appear to guess market direction well, I despise scalping personally, and carry trades have gotten me margin called.

However, I do believe I have found a method that works for me. While I discuss this method you are likely to think it is too straightforward, and will want to start adding indiors, altering time frames, decreasing stop losses, including take profits and multiples lots. That is all fine to do, but I would only ask that you begin a new thread to do so, since the purpose of this thread is for anybody eager to perform significant backtesting on unique pairs.

This technique netted (including disperse ) 8294 pips since the start of 2007 until now (see backtesting results below) or 331 pips each month. And this is just with 7 pairs. We can increase this with extra pairs, therefore my request to help backtest.

This is the method:

Time Frame: Daily
Entry: 8 and 5 EMA cross (connected indior is everything you will need )
Exit: End of next day

So here is how it works. In 00 (midnight) GMT assess the charts and see if the EMAs have crossed. If this is the case, enter a market order in the direction of the cross. No stop losses, no take profits.

The following day at 00 (midnight) GMT near the order.

I told you it was really straightforward. Here are back test results from January 2007 before the present (2-11-09).

GBP/JPY 2301 Pips (Gross)
-470 pips for disperse (10 pips spread)
1831 Pips internet

GBP/USD 839 Pips (Gross)
-48 pips for disperse (5 pips spread)
791 Pips internet

AUD/JPY 1606 Pips (Gross)
-520 pips for disperse (10 pips spread)
1086 Pips internet

GBP/CHF 1487 Pips (Gross)
-530 pips for disperse (10 pips spread)
957 Pips internet

USD/CHF 813 Pips (Gross)
-216 pips for disperse (4 pips spread)
597 Pips internet

EUR/GBP 1199 Pips (Gross)
-159 pips for disperse (3 pips spread)
1040 Pips internet

EUR/USD 2098 Pips (Gross) I utilized 3/8 EMA crossover rather than 5/8
-106 pips for disperse (2 pips spread)
1992 Pips internet

I haven't had time to examine different pairs. I feel that shing from 5/8 EMA cross to 3/8 would benefit USD/CHF and possibly GBP/USD as well but haven't had time to check.

So again, the purpose of this thread is for anybody to help backtest this technique on other pairs, using just the EMA cross indior for entry, and final at the end of this 24 hour interval.

Anticipating hearing from you as you can.
https://www.forexsoutheast.asia/atta...1848622378.mq4

Hi dreamliner
there must huge drawdown, right? So possibly for 10 k account we should use a micro lot?
Did u use vhands or somethin like backtest this method?
thanks

Plus almost 300 varying from 5/8 to 3/8 on Cable to get a total of 1089 net pips to the interval.

Originally Posted by ;

hi dreamliner
there must huge drawdown, right? So maybe for 10 k account we ought to only use a micro lot?
Did u use vhands or somethin like backtest this method?
Thanks

I wouldn't use ANY lots right now until you have backtested.

I simply used the chart and backtested visually.

See if this will help You out dreamliner. Hope I perform the upload right....
https://www.forexsoutheast.asia/atta...1042009421.mq4
https://www.forexsoutheast.asia/atta...8830472460.ex4

You're saying require a new trade every day rather than going signal to signal? In this pic, in the first up arrow you'd begin your daily trades. And each day require a new trade since you're still at the correct direction. And for those 3 red candles in the top you'd have a losing trade daily -- and also a loser about the red candle just before the down arrow?

I made a ea to test this procedure (I like easy ), results for majors / 20 years (1990 - now ) below (alpari information 00:00)

Your EMA cross indior looks to the long run = repaints

Do not squander your time for backtesting. Or put 2 MA on chart and also test

Cool system. Have you got any stats on what the chances were that 7 will be open at any moment? Also, do you know what your largest daily drawdown would have been?

The way he explained it, it seems like you'd pretty much always have a commerce open on every pair.

Originally Posted by ;

Cool system. Do you have any stats on what the chances were that all 7 would be open at any time? Also, would you understand what your biggest daily drawdown would have been?