5-20 ema cross over or 9-21 ema cross over for short term trading.Please help me.
Hello Trader,
Assuming you are a beginner trader, and is now ready to take a lot of risk, you could start with a 5 over 20 ema crossover for short-term trading.
As you gain experience you will realize that higher the ema’s for crossover the signal gets better.
After a few months, you will automatically be looking for 20 over 50 ema crossover.
After a few years have passed, now that you have witnessed a few market cycles, you are now looking for 100 over 200 ema crossovers.
This is a process for improvising yourself into pro trader. One thing to remember, do not loose all your chips too early.
Trade Wisely.
Hi,
I feel 14-73 EMA crossover works the best for Nifty and BankNifty indices in NSE. The numbers look odd but they give the most profitable results in backtest for last 8 years. Here is the backtest summary:
| Paramter | Value | |
| Nifty | Bank Nifty | |
| Initial Capital | 200000 | 200000 |
| Final Capital | 708740 | 1727157.50 |
| Backtest Period | 02-Jan-2007 to 09-02-2016 | 02-Jan-2007 to 09-02-2016 |
| Net Profit % | 254.37% | 763.58% |
| Annual Return % | 14.90% | 26.70% |
| Number of Trades | 36 | 36 |
| Winning Trade % | 22.22% | 38.89% |
| Average holding Period | 61.28 periods | 60.92 periods |
| Max consecutive losses | 9 | 4 |
| Max system % drawdown | -59.29% | -59.40% |
| Max Trade % drawdown | -22.08% | -97.77% |
Read more about his strategy with the downloadable AFL code in the below link:
http://tradingtuitions.com/afl-of-the-week-14-73-ema/
You use any EMA crossover strategy but there will always be whipsaws in sideways market. Think of how to avoid trading in these sideways markets.