EUR/USD RSI-EMA Cross Strategy with Fixed Pip Exits

Summary

This EUR/USD strategy smooths a 20-period RSI with a five-period EMA and uses the 50 level as a directional trigger. A cross above the threshold opens a long position, while a cross below opens a short position. Each side has a fixed 50-pip profit target and 50-pip stop, and a signal in the opposite direction also closes the existing position. The published test conditions specify an initial equity of $100,000, position size equal to 100% of equity, and no pyramiding.

The document provides the basic rules and code context, but no strategy-report results or evidence of returns. It is a compact, symmetric momentum-style system whose performance would depend on the instrument, spread, execution, and test assumptions. The author notes that the strategy was designed with hindsight and that past performance does not guarantee future outcomes. No market-regime filter or additional risk sizing method is described, so the fixed pip exits and full-equity sizing should be considered central limitations when assessing the approach.

Key ideas

• A five-period EMA smooths a 20-period RSI to generate directional crosses at 50.
• Crosses above 50 open longs and crosses below 50 open shorts.
• Both directions use fixed 50-pip profit targets and stops.
• Opposite-direction signals also close the current position.
• The stated test assumptions use full-equity order sizing without pyramiding, and no performance results are supplied.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.