EMA Crossover Strategy Backtester
“What if you traded this strategy in the past — profit or loss?” This tool simulates trading on EMA crossover signals with real prices, then compares against simply buying and holding so you can see if the strategy actually wins (defaults match the strategy a real trading bot uses).
Set the parameters and run — defaults match the real trading bot's strategy (EMA 12/26)
How EMA crossover works
This strategy uses two moving averages: a fast one (short EMA, e.g. 12) and a slow one (long EMA, e.g. 26). When the fast line crosses above the slow = buy signal (momentum turning up), and crossing below = sell signal. The trend filter (EMA 200) only allows buys when price is above the big trend line (uptrend) to avoid buying in the middle of a bear market.
Experiment to see which settings fit which coin and timeframe — but beware the “over-fitting” trap: the settings that look best in a backtest often aren’t the best going forward, because they merely “memorized” the past rather than “predicting” the future.
Prefer something simpler that doesn’t require timing? Compare with the DCA backtest simulator.
Frequently asked questions
›What is a backtest?
A backtest runs a trading strategy against historical price data to see how it would have performed. It's a way to evaluate a strategy before risking real money — but past results don't guarantee future performance.
›Why does the strategy often lose to buy & hold?
In a long-term uptrend, buy & hold usually beats in-and-out strategies: every time you sell and wait to re-enter you risk missing a rally, and fees add up. A trading strategy only wins if it genuinely avoids big losses in bear markets.
›Where do the default 12/26 EMA values come from?
They're a popular standard (the same as in MACD) and match what the sample trading bot actually uses. You can change them, but remember: the best settings in hindsight aren't necessarily the best in the future.