Exactly two weeks ago, on the pages of comparic.com, I presented EMA Rainbow strategy. This strategy was based on three exponential moving averages (EMA), which allow to determine the trend and signal moment of transaction.
Over the past two weeks, I have published analyses of the signals that generated this strategy. According to the announcement, it is time to summarize and see if this strategy would be profitable and whether it was worthwhile to invest basing on its signals.
Summarizing all the analyses that have emerged over these two weeks, we notice that this strategy is profitable and allows us to earn. Only from the set-up I published we been able to make a return of tens of percent.
By omitting a purely statistical approach, I would like to share some of the important things that I have observed during these tests.
According to technical assumptions, positions should be opened at the time when price crosses the moving average EMA 14 and in the next two candles will return below (in the downward trend) or above (in the upward trend).
Observing the 15-minute graphs over the past two weeks I have noticed that there are very few such signals. The market is more likely to cross the EMA14 average and rejects it in the same candle. If this candle produces directional (supply in downward trend or demand in upward trend) pin-bar, then the signals are also effective.
When investing in this strategy you should avoid consolidated markets and situations where moving averages are very close together. The more vertically inclined and the further they are from each other, the trend is stronger and the signal performance is higher.
In summary, the EMA Rainbow strategy can no doubt be considered effective. For further strategies are waiting to be checked, I am have to stop further testing, and if this form of trading matches you, then I encourage you to take further tests of EMA Rainbow strategy. Maybe it will be a system that will make you financially successful. These two weeks have shown that, unlike the End-of-Day strategy, the EMA Rainbow actually generates a lot of profitable signals… but if you think this is not the case, feel free to click on this link and check out the new strategy –EMA 8/20– I will be testing for the coming next two weeks.
Try trading on binary options on currencies, indices, commodities and shares of popular companies. If you lose, regardless of the size of the loss, you never lose more than you bet. You can also choose other expiration hours for options, both shorter and longer. Create a real account and earn 50 to 150% Welcome Bonus.
