Simplest Daily EMA Cross System

Greetings friends,

I have tried many things in the forex world and have found hundreds of methods that don't work for me so far. I can't seem to guess market direction, I hate scalping Personally , arbitrage trades get me margin calls.

But I do believe I've found a method that works for me . When I share this method, you will think it is too simple and will want to start adding indicators, changing timeframes, reducing stop losses, adding take profits and multiple lot sizes. That's all well and good, but I'm just asking you to start a new thread to do this, as the purpose of this thread is simply for anyone willing to do significant backtesting on different currency pairs.

Since the beginning of 2007, the method has netted (including spreads) 8294 pips (see backtest results below), or 331 pips per month. And that's just 7 pairs. We can increase this with additional pairs, so I'm asking for help with backtesting.

Here's how:

Time Frame: Daily Entry Points: 5 and 8 EMA Crossover (The attached indicator will suit your needs)
Exit: end the next day

Here's how it works. GMT 00 (midnight) Check the chart and see if the EMA has crossed. If so, enter a market order in the cross direction. There is no stop loss and no take profit.

Orders close at 00 GMT (midnight) the next day.

I told you it was very simple. The following are the backtest results from January 2007 to the present (2-11-09).

GBP/JPY 2301 points (total)
-470 pips (10 pips spread)
1831 points net worth

GBP/USD 839 pips (total)
-48 pips (5 pips spread)
Net worth 791 points

AUD/JPY 1606 points (total)
-520 pips (10 pips spread)
Net worth 1086 points

GBP/CHF 1487 points (total)
-530 pips (10 pips spread)
957 net points

USD/CHF 813 pips (total)
-216 pips (4 pips spread)
Net worth 597 points

EUR/GBP 1199 points (total)
-159 pips (3 pips)
1040 net points

EUR/USD 2098 pips (total) I used the 3/8 EMA crossover instead of the 5/8
-106 pips (2 pips)
1992 net points

I haven't had time to test other pairs yet. I believe that changing from the 5/8 EMA crossover to the 3/8 will be beneficial for USD/CHF and possibly GBP/USD, but haven't had time to test it yet.

Again, the purpose of this post is for anyone to help backtest this method on other currency pairs, using only the EMA cross indicator for entries and closing the position at the end of the 24 hours.

Looking forward to hearing from you.