Backtesting Basics - EMA Crossover Trading System

Backtesting Basics - EMA Crossover Trading System

//Marketcalls Backtesting Tutorial

_SECTION_BEGIN("EMA Crossover Trading System");
SetChartOptions(0,chartShowArrows|chartShowDates);

//Plot CandleSticks
Plot( C, "Price", ParamColor( "Color", colorDefault ), ParamStyle( "Style", styleCandle, maskPrice ) );


//Compute EMA 20 and EMA50

EMA20 = EMA(C,20);
EMA50 = EMA(C,50);


//Plot the EMA lines


Plot(EMA20,"EMA20",colorGreen,styleLine);  //Shorter Length EMA
Plot(EMA50,"EMA50",colorblue,styleLine);  //Longer Length EMA


//Logical Buy and Sell Rules

Buy = Cross(EMA20,EMA50);  //Positive Crossover 
sell = Cross(EMA50,EMA20); //Negative Crossover

//Short AND Cover for a system which wants to go short


//Plot Buy and Sell Arrows

/* Plot Buy and Sell Signal Arrows */

PlotShapes(IIf(Buy, shapeSquare, shapeNone),colorGreen, 0, L, Offset=-40);
PlotShapes(IIf(Buy, shapeSquare, shapeNone),colorLime, 0,L, Offset=-50);
PlotShapes(IIf(Buy, shapeUpArrow, shapeNone),colorWhite, 0,L, Offset=-45);
PlotShapes(IIf(Sell, shapeSquare, shapeNone),colorRed, 0, H, Offset=40);
PlotShapes(IIf(Sell, shapeSquare, shapeNone),colorOrange, 0,H, Offset=50);
PlotShapes(IIf(Sell, shapeDownArrow, shapeNone),colorWhite, 0,H, Offset=-45);



//At what Price to Buy

BuyPrice = Close;
SellPrice = Close;


//Money Management - How much to buy


SetPositionSize( 100000, spsValue ); // 1 Lakh in each trade

//PositionSize = 100000;



//Trade Delays

SetTradeDelays(0,0,0,0);




_SECTION_END();