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EMA Crossover

A faster trend-following rule using 12- and 26-day exponential averages. It reacts earlier than SMA crosses but pays for that speed with extra whipsaws.

Entry Logic

Buy when the 12-day EMA crosses above the 26-day EMA.

Exit Logic

Sell when the 12-day EMA crosses below the 26-day EMA.

How Rules Combine

EMAs weight recent prices more heavily than old ones. A crossing fires when short-term momentum flips direction relative to medium-term momentum — the same idea as MACD's line pair.

When It Works (Market Edge)

Markets with quick, decisive trend reversals, where an SMA-based signal would enter too late.

When It Fails

Choppy ranges: the faster reaction produces more crossing signals, and each crossing is a losing trade in a flat market.

Common Myths

Myth: EMA crosses give earlier, therefore better, entries than SMA crosses.

Truth: Earlier entries are also earlier exits. In ranges, faster averages generate more losing round trips — the extra speed is not free.

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5Y Rankings

Performance across major assets, sorted by return.

Period:
AssetTotal ReturnWin RateProfit FactorMax DrawdownAvg DurationTradesAction