EMA_Crossover_System. This strategy was created with Visual JForex
platform. This strategy is using only 3 indicators: 5EMA, 10EMA,
RSI(10) and it's running on the 5 minute chart on EUR/USD. Is
anincredibly simple yet unbelievably effective system. This system
enter LONG position when the 5EMA crosses the 10EMA from underneath
and RSI must be above 50 to warrant entry. Enter SHORT position when
the 5EMA crosses the 10EMA from the top and RSI must be below 50 to
warrant entry.
When my strategy exit a trade: This depends on your trading plan
(everybody should have a plan) and money management rules. Just by
glancing at some recent data, the average hourly trend seems to extend
beyond 100 pips before reversing. I recommend setting a T/P between 50
- 100 pips(on 1h TF) or 5-10 pips(on 5 minute TF). S/L should provide
plenty of cushion. Most trades will be winners in the long-term, but
I'm uncertain of an exact win-lose ratio. Experimentation will yield
the best results. I'd start with a S/L of 70 and a fixed TP of 5
pips.
This strategy currently runs in scalping mode thus on lower time
frame, 5 minutes time frame and it can run almost on all major
currency pairs but from backtesting the best results are on EUR/USD
My strategy description can be found in my article:
www.dukascopy.com/fxcomm/fx-article-contest/?Ema-Crossover-System-Meet
s-Visual&action=read&id=1416