The idea
Buy when the fast EMA crosses above the slow one; sell on the cross back. Works when the market trends cleanly. Expect a string of small losses in sideways markets; the 3% stop keeps each one limited.
Strategy guide · Trend following · long
EMA 9/21 Crossover strategy: exact rules, strengths and weaknesses.
Buy when the fast EMA crosses above the slow one; sell on the cross back. Works when the market trends cleanly. Expect a string of small losses in sideways markets; the 3% stop keeps each one limited.
Entry rule
Buy when the 9-period EMA crosses above the 21-period EMA.
Exit rule
Sell when the 9 EMA crosses back below the 21 EMA, or at a 3% stop loss.
Where it works
Markets that trend for days or weeks: the strategy stays in for the whole move.
Where it fails
Sideways markets, where the two lines cross again and again and every trade is a small loss.
The common mistake
Judging it on a handful of trades. A crossover system loses often and earns its result from a few large winners.
Backtest it yourself
Sign in, open Genni Strategies and pick "EMA 9/21 Crossover" from the leaderboard, or build it with the rule builder. Choose a coin and timeframe and press "Run backtest" to see every trade on up to 1,000 real candles, fees included. "Start paper trading" then follows it live without money.
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Questions
Frequently asked questions
What are the rules of the EMA 9/21 Crossover strategy?
Entry: Buy when the 9-period EMA crosses above the 21-period EMA. Exit: Sell when the 9 EMA crosses back below the 21 EMA, or at a 3% stop loss.
Does the EMA 9/21 Crossover strategy work?
Works when the market trends cleanly. Expect a string of small losses in sideways markets; the 3% stop keeps each one limited. It tends to do well here: Markets that trend for days or weeks: the strategy stays in for the whole move. It tends to lose here: Sideways markets, where the two lines cross again and again and every trade is a small loss. Past results do not predict future results.
How can I backtest the EMA 9/21 Crossover strategy for free?
Sign in, open Genni Strategies and pick "EMA 9/21 Crossover" from the leaderboard, or build it with the rule builder. Choose a coin and timeframe and press "Run backtest" to see every trade on up to 1,000 real candles, fees included. "Start paper trading" then follows it live without money.
This page is education, not investment advice. Trading involves substantial risk of loss. Read next: Trading indicators · Trading strategies · Candlestick patterns