Based on yesterday's trading strategy, I developed my own 3EMA crossover strategy. Instead of only using the Close data. The high and low are also used. Here's the idea.
Condition1 = EmaLow crosses above EmaMedClose and EmaMedClose > EmaSlowClose; Condition2 = EmaMedClose crosses above EmaSlowClose and EmaLow > EmaSlowClose;
Buy if Condition1 OR Condition2 is true.
Sell if EmaHigh crosses below EmaMedClose OR EmaMedClose crosses below EmaSlowClose OR EmaLow crosses below EmaSlowClose.
EMA length are set to: FastHighLength(7), FastLowLength(7), MedCloseLength(18), SlowCloseLength(30).
The system does well to catch big breakouts. The 2 problems though is that it is very laggy and the whipsaws in pricing are eating it alive. See figure below.
Also, notice that I'm using a 100 contracts / bar chart.