EMA Crossover Strategy by gregoirejohnb
By gregoirejohnb
Performance Metrics
- Author: gregoirejohnb
- Symbol: BINANCE:ETHUSDT
- Timeframe: 1 hour
- Net P&L: +23,655.01 USD (+23.43%)
- Win Rate: 30.4%
- Profit Factor: 1.89
- Max Drawdown: 7,047.06 USD (6.48%)
- Total Trades: 138
- Sharpe Ratio: 0.557
Description
Moving average crossover systems measure drift in the market. They are great strategies for time-limited people.So, why don't more people use them?I think it's due to poor choice in choosing EMA lengths: Market Wizard Ed Seykota has a guideline for moving average crossovers: the slow line should be at least 3x the fast line. This removes a lot of the whipsaws inherent in moving average systems, which means greater profitability. His other piece of advice: long-only strategies are best in stock markets where there's a lot more upside potential.Using these simple rules, we can reduce a lot of the whipsaws and low profitability trades! This strategy was made so you can see for yourself before trading. === HOW TO USE THIS INDICATOR ===1) Choose your market and timeframe.2) Choose the length.3) Choose the multiplier.4) Choose if the strategy is long-only or bidirectional. Don't overthink the above! We don't know the best answers, that's why this strategy exists! We're going to test and find out.After you find a good combination, set up an alert system with the default Exponential Moving Average indicators provided by TradingView.=== TIPS ===Increase the multiplier to reduce whipsaws (back and forth trades).Increase the length to take fewer trades, decrease the length to take more trades.Try a Long-Only strategy to see if that performs better.