The EMA CrossOver Strategy is one of the simplest, for ease of use and understanding. This simple strategy has been enhanced with a third EMA as a filter for taking a long or a short entry. This EMA filter helps reduce unwanted entries. Also, we have added an algorithm to adjust the fast EMA period, this may reduce lag time on entering a position. This algorithm reviews the last entry to determine if the entry was lagging and then reduces the fast period time to allow for quicker entries.
With advanced software it has become easier to develop utilities that enhances an EMA crossover strategy. Using these utilities with an exponential moving average crossover becomes obvious and easy. We this advancement we are able reduce potential negative entries while managing risk.
Through the use of NinjaTrader® 8 and a high-speed internet connection we have developed utilities that may locate an EMA crossover point. The system looks for the fast EMA to crossover the slow EMA providing that the crossover is either above or below the EMA Filter Line, then the system tags the entry with an arrow in the direction of the entry. Then the strategy calculates the filters below:
- EMA Filter, a crossover above the filter for long entry, a cross over below the filter for a short entry
- Chart Angle filters, use this filter to reduce unwanted entries when the market is ranging.
- Momentum filter, use this filter to reduce unwanted reversals.
- Use Fast EMA Calculation, this will change the Fast EMA period dynamically to reduce the lag time for faster entries.
- NinjaTrader’s ATM, the system uses NinjaTrader Advance Trade Management for entries
- Advanced Algorithm self-adjusts to changing frequency of the market to reduce the need to make daily adjustments.
Above is a quick tutorial of the Bet EMA CrossOver 4.0 Auto Bot Strategy