I test a profitable trading system that I found on the Trade Prime channel for 100 consecutive trades to see exactly how it performs. This 3 Exponential Moving Average (EMA) plus trend line system is more subjective than most that I test, but there is huge potential for optimization. To that end I give my 5 ideas on how to get the most out of this particular system plus a Trader’s Landing score. In addition to examining two different methods of taking profits.
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⏱️ Timestamps ⏱️
00:00 – Start
03:36 – Indicators
01:25 – Long Examples
02:45 – Short Examples
04:12 – Testing Results & Equity Curve
05:31 – Trader’s Landing Score
05:43 – Optimization
⚙️ System Specifics ⚙️
🎹 Instrument: Bitcoin vs. US Dollar (BTC/USD)
⌛ Time Frame: 1-Hour (H1)
🏆 Trader’s Landing Score: 7
👀 TradingView Indicators
Name: Exponential Moving Average (EMA)
Inputs: 200 Period
By: TradingView Built-In
Link: https://www.tradingview.com/support/solutions/43000592270-exponential-moving-average/
Name: Exponential Moving Average (EMA)
Inputs: 20 Period
By: TradingView Built-In
Link: https://www.tradingview.com/support/solutions/43000592270-exponential-moving-average/
Name: Exponential Moving Average (EMA)
Inputs: 9 Period
By: TradingView Built-In
Link: https://www.tradingview.com/support/solutions/43000592270-exponential-moving-average/
☝️ Long Entry
- Price must be over the 200 EMA.
- Price must close below the 200 EMA while the 20 EMA is over the 9 EMA.
- Price must close back above the 200 EMA while breaking the trendline of the pullback.
- Enter on the close of candle that breaks the trendline and the 200 EMA.
👇 Short Entry
- Price must be under the 200 EMA.
- Price must close above the 200 EMA while the 20 EMA is under the 9 EMA.
- Price must close back below the 200 EMA while breaking the trendline of the pullback.
- Enter on the close of the candle that breaks the trendline and the 200 EMA.
🔥 Risk to Reward: 1:1.5
🛑 Where to place stop-loss:
For Longs: The lowest price level below the 200 EMA.
For Shorts: The highest price level above the 200 EMA.
🚀 Where to take profits: 1:1.5
⚠️Disclaimer: This content references opinion and is for information purposes only. Not intended to be investment advice. Seek a licensed professional for investment advice.