EMA 20/50 Cross

Shared by a BacktestingMax trader on 26 Mar 2026

The 20 EMA reacts quickly to price, the 50 EMA reflects the medium-term trend. When the faster one crosses the slower one, momentum has shifted enough that the market is likely entering a new directional phase. We are trying to make profit from that shift in the trend.

Entry rules

  1. Wait for the 20 EMA to cross the 50 EMA
  2. Wait for the next candle to close in the direction of the cross
  3. Enter at the open of the next candle

Stop loss and take profit

  1. SL - for longs at swing low and for shorts at swing high
  2. TP - fixed 1:2 RR - twice the distance from stop loss.

Inside the app

Opening this strategy in BacktestingMax shows the full record behind the numbers above, on a free account: every trade with entry, exit, size and P&L plus CSV and Excel export; a bar-by-bar replay of the author's own session on 1-minute history; Monte Carlo projections that reshuffle the trade sequence; the equity curve against buy-and-hold; advanced statistics including Sharpe and Sortino ratios, expectancy, payoff ratio, recovery factor, maximum drawdown and longest time underwater; a day-by-day P&L calendar; and behavioural analysis covering revenge trading, position-size chasing, long/short bias and the hours and days it actually made money.

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Figures come from backtests run by the author inside BacktestingMax. Past performance is not indicative of future results, and nothing here is financial advice.