An EMA-based strategy which involves the following - Trend trading - Price interaction with the EMA's - Using EMAs for consolidating profit
Here are the rules Step 1. Establish a trend In this strategy if the fast moving EMA (20 or the blue line) is above the 50EMA (slow EMA - red line) then we're in an uptrend. If its the opposite we are in a downtrend.
Step 2. Two Cycles We want to have seen at least two cycles of Higher Highs and Higher Lows in an uptrend or Lower Highs and Lower Lows in a downtrend
Step 3. Entry when price interacts with the 20 EMA after step 1 and 2 above with 30 pip Stop loss target and no Take profit
Step 4. If the trend goes in your favour, trail the stop loss by scaling in behind the 50EMA (red line)
These backtest show incredible results of over 50% on the GBPJPY pair in since September 2017, assuming absolutely all opportunities were taken.
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