Since the Weighted Moving Average made the Golden Cross Trading Strategy better and gave a relatively consistent profit graph in the long run, can the Triple Exponential Moving Average give the same or even better win rate than the WMA Golden Cross? Actually this time it gets even better because this time I took 200 Trades with the TEMA Golden Cross Strategy. You see, in a normal Golden Cross Trading Strategy, and in the WMA Golden Cross that we have tested before, the stoploss was set below or above the moving average. But since the Triple Exponential Moving Average is faster than both Weighted, and Normal Exponential Moving Averages, the stoploss in the TEMA Golden Cross was sometimes way too close to the entry. So I took 200 trades, 100 with stoploss below or above the moving averages, and 100 trades with stoploss set using the pullbacks of the trend. So in this video, we are not only going to find out if TEMA Golden Cross is better than the WMA Golden Cross, but also how pullback stoploss can affect the win rate and profit graph of a trading strategy.

If you look at the chart, you will notice that there are 3 moving averages instead of 2. In a normal Golden Cross Strategy, we use 50 and 200 moving averages to generate Golden Cross Signals. But the Triple Exponential Moving Average is so quick at reacting to the price movement, that it gives a lot of Golden Crossovers in a short period of time, leading to more false signals. So I had to use a 200-period normal Exponential Moving Average to filter most of those false signals.

As you can see, with the stoploss above or below the moving averages, the profit graph went in the sideways direction at the beginning, but then took a dive and started a downtrend. This is one of the worst profit graphs we have seen so far. The TEMA Golden Cross Strategy did recover some of the loss near the end, but if we take the same trades but by using the pullback stoploss, you will notice that the stoploss is not getting triggered by market noise. The Triple EMA Golden Cross strategy doesn’t give a lot of good quality signals like the Weighted or even the Normal Golden Cross Strategy. However, if we look at the profit graph in the Trading Rush App, we will notice that the profit line with the pullback stoploss no longer looks like a market crash.

The TEMA Golden Cross strategy with the moving average stoploss got an approximate win rate of 37 percent with a 1.5 to 1 reward risk ratio, and the profit graph looked like the profit graph of a confident beginner trader. On the other hand, the TEMA Golden Cross Strategy with pullback stoploss got a 43 percent approximate win rate with a 1.5 to 1 reward risk ratio It didn’t lose money and was not bad as the first one.

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The first TEMA Golden Cross with moving average stoploss gets a TR Score of 17.9 out of 50 and ranks 43rd from the top, and 4th from the bottom. Above the MACD zero lag strategy, and below the CCI Trading Strategy.

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On the other hand, the better TEMA Golden Cross with the stoploss above or below the pullback gets a TR Score of 22.1 out of 50, and ranks 35th from the top, below the DEMA Golden Cross Strategy, and above the Awesome Oscillator second strategy.

That’s all.