Rohan Das - Simple 10 EMA trading strategy for consistent 10-20% profits. Source:
Loses money
No edge after realistic trading costs
- trades tested
- 285
- per trade after costs
- -40.57bp
- winners
- 28%
- years of data
- 15.9
On the daily chart, in an uptrend wait for price to pull back to the 10 EMA; when a candle touching the EMA is followed by a break of that candle, enter with the stop below that candle, then trail with the 10 EMA and exit only if price stays below it for a second day. Shorts use the same rules mirrored in a downtrend.
The exact rules we tested
- 01Instrument: SPX | Signal timeframe: 1d | Direction: both
- 02LONG when: (low <= ema10) AND (close > ema10) AND (ema10 > ema10_5ago)
- 03SHORT when: (high >= ema10) AND (close < ema10) AND (ema10 < ema10_5ago)
- 04Entry: stop order at the break of the signal bar signal_high (expires after 2 bars)
- 05Stop: signal bar low/high
- 06Exit longs when: [close < ema10] on each of the last 2 bars
- 07Exit shorts when: [close > ema10] on each of the last 2 bars