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Simple 3-EMA Crossover Trading Strategy - Free Profitable TradingView Strategy Script (+ Source Code)

SIMPLE 3-EMA CROSSOVER TRADING STRATEGY FOR BEGINNERS

Free TradingView Scripts - Simple 3-EMA Crossover Trading Strategy - Free Profitable TradingView Strategy Script (+ Source Code)

Risk Disclaimer ❗

The information provided on this post does not constitute investment advice, financial advice, trading advice, or any other sort of advice, and you should not treat any of the posts's content as such. Free Trading View Scripts does not recommend any cryptocurrency should be bought, sold or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.

Introduction

In this post, I’m gonna show you a simple yet profitable trading strategy that anyone can use to trade crypto. We’ll only be using one type of indicator and that is the Exponential Moving Average. Later in this post i’ll help you code this strategy using tradingview pinescript so that we can easily backtest historical data and see if this strategy has a chance or not.

Before we start, you might want to use my referral link on Binance below to give you a 10% discount of commission whenever you place a trade.



Since I'll be giving this all away for free, please take a moment to subscribe to the youtube channel and like the video to support the blog and the channel.




The Strategy

Now moving back. For this strategy, we’ll be using 3 Exponential moving averages.
  • 200 EMA
  • 100 EMA
  • 50 EMA

Trend

We’ll be using the 200EMA as a trend indicator. We can only go long if the price is above the 200EMA, and short if the price is below the 200EMA line


Free TradingView Scripts - Long Only When Price is Above 200 EMA (Uptrend)
Above 200 EMA - Long Only

Free TradingView Scripts - Short Only When Price is Below 200 EMA (Downtrend)
Below 200 EMA - Short Only

We use this to remove the unnecessary trades and only trade with the trend since most profits are gained going with the trend rather than against it.

Entry Conditions

  • Long: we go long when the 50 EMA crosses above the 100 EMA line.


Free TradingView Scripts - Going Long When EMA 50 Crosses Above EMA 100
Go Long

  • Short: we go short when the 50 EMA crosses below the 100 EMA line.

Free TradingView Scripts - Going Short When EMA 50 Crosses Below EMA 100
Go Short

Exit Conditions

For the exit, we exit the long trade whenever the 50 EMA crosses below the 100 EMA and exit the short trade when the 50 EMA crosses above the 100 EMA line.


Free TradingView Scripts - Long Exit Conditions
EMA 50 Crosses Below EMA 100 - Exit Long


Free TradingView Scripts - Short Exit Condition
EMA 50 Crosses Above EMA 100 - Exit Short


Conclusion

And since  I’ve tested this strategy script, I already know that it’s profitable on this symbol and timeframe. And as you can see, this strategy is verified profitable with this historical data and is backed by over 100 to 200 trades.

Free TradingView Scripts - Equity of 3-EMA Crossover Strategy
Conclusion of the Strategy


Keep in mind that I advise you to learn from this video and create or code your own strategy first before you go jumping and trading with this strategy live. Certainly because most of the times the market changes as soon as you live trade it. And, that’s the reason why researching on your own and live testing is so important. In the case  that the strategy breaks you could create or find another strategy.

Another way to improve your testing is to use the monte carlo simulation before live testing. As this will check whether your account will blow up and determine the potential max drawdown and return over time. I’ll talk about this more on another post or you can buy Kevin Davey’s book for algo trading (link to Kevin Davey's book),

In the next post I'll be adding a trailing stop loss to this strategy so that you can secure your profits and never give it back to the market again.

Source Code

You can view the full source code here: source code

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