50 EMA Trading Strategy – Does It Work? (Setup, Rules, Backtest Results)

The 50 EMA strategy is a technical analysis trading strategy that uses the 50-day EMA to identify the direction of the trend and to generate buy and sell signals. The strategy is typically used by traders who are looking to capture medium-term trends in the market, and it is often combined with oscillators and momentum indicators.

We backtest a moving average crossover system with the following trading rules:

* When the close crosses above the 50-day EMA of the close, we go long.

* When the close crosses below the 50-day EMA of the close, we sell.

Below (Shown in the picture) is the equity curve for the gold price (GLD).

We used the 50 EMA as a filter and add a second indicator and got a terrific result for stocks (S&P 500 and Nasdaq 100). Check out how it performed here >>

https://www.quantifiedstrategies.com/50-ema-strategy/