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.
| Asset | Total Return | Win Rate | Profit Factor | Max Drawdown | Avg Duration | Trades | Action |
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