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Strategies / Trend / EMA Cross Reversal With Candle Stop

EMA Cross Reversal With Candle Stop

The strategy buys when the 9-period EMA crosses above the 21-period EMA and sells short on the reverse cross. Each entry uses a stop at the signal candle's low or high, and positions close when the 21-period EMA turns against them.

TrendLong & shortSwingUSD/JPYDaily
4.52Profit factor
264,550Net profit USD
1.38%Win rate
579Trades
-62,650Max drawdown
457Avg trade

Best run of 2. USD/JPY, Daily, spread 1, from run pf:2026-10-05-USDJPY-D.tsv:12.

Entry rules, long

  2. One contract is bought at market with a stop distance of the close minus the bar's low, but at least one tick.

Entry rules, short

  2. One contract is sold short at market with a stop distance of the high minus the close, but at least one tick.

Exit rules

  2. When no new cross occurs, an open short closes at market if the 21-period EMA is higher than on the previous bar.
  3. An opposite cross reverses the open position, with the new stop set from that bar.

Test conditions

PeriodUp to 2026-10-05
InstrumentUSD/JPY, Daily
Spread1 points
Starting capital1,000,000
CostsSpread only. Commissions and overnight financing are not included.
BarsUp to 200,000 bars, fewer where the instrument has less history
Last tested2026-10-05

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
USD/JPYBest runDaily4.52 5791.38264,550 USD-62,650
Nikkei 225Dailyn/a 48020.2116,444 USD-12,618

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// EMA Cross Reversal With Candle Stop
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Trend
// Direction: Long & short
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false

emafast = ExponentialAverage[9](close)
emaslow = ExponentialAverage[21](close)

24 more lines: the entry and exit rules.

Setup

How to load it

  1. Copy the code with the copy button on the code block.
  2. In ProRealTime, open a chart of the instrument and timeframe you want to test, then open ProOrder > New trading system and choose "Create with programming".
  3. Paste the code, give the system a name and save it.
  4. Click "Backtest", set your own spread and position size, and run it before you consider trading it live.

Indicators used

EMA
Longer historyRe-run on up to 1,000,000 barsUSD/JPY · Daily · older data 0.00 USD

USD/JPY had no history beyond the standard run, so both runs used 12,000 bars.

USD/JPY · Daily

Bars available12,000
Net, standard 200,000-bar run264,550.00 USD
Net, long run264,550.00 USD
Net on the older data alone0.00 USD
Read this firstKnown weaknesses2 points
  • Results include the spread only. Commissions and overnight financing are not included.
  • The code is published as it was backtested and has not been compiled again since.

Questions

About this strategy

Can I run EMA Cross Reversal With Candle Stop in ProOrder?

Yes. The code is ProBuilder and runs as an automated ProOrder system. Backtest it on your own account with your own spread and position size before trading it live.

Which markets was it tested on?

It was tested on 2 market and timeframe combinations. The best run was USD/JPY, Daily, with a profit factor of 4.52 over 579 trades.

How large was the drawdown?

The best run had a maximum drawdown of 62,650 USD at the tested position size, against a net result of 264,550 USD.

Does it trade long, short or both?

It trades both long and short.

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See how ProRealAlgos combines strategies like this into one automated portfolio.

The ProRealAlgos community gets the full rules, the complete code and the automated portfolio.

Past backtest results do not guarantee future results. This is not financial advice. Curated and maintained by ProRealAlgos. ProRealTime™ is a trademark of ProRealTime SAS. prorealalgos.comStatsDocs