Exponential Moving Average (EMA) Trend Following Strategy

A 1-minute binary options strategy using 20 and 50 Exponential Moving Averages to identify trends. Enter on retracements to the 20 EMA, acting as dynamic suppor

Published · Updated · Methodology: Technical Indicators

Part of: EMA Strategies

  • Methodology: Technical Indicators
  • Content type: strategy
  • Timeframes: 1-minute
  • Markets: Binary Options, OTC, Real Market

Indicators used

  • EMA

Source video

Decoded from: BINARY OPTIONS I STOPPED TRADING REVERSALS AND FOLLOWED TRENDS | BINARY OPTIONS STRATEGY by RAIDER GM — watch the original

Key timestamps:

  • 0:44 - Introduction to trend trading
  • 1:25 - How to identify a trend using Moving Averages
  • 1:35 - EMA settings explained
  • 2:00 - MA cross as a trend switch sign
  • 2:15 - Entry rule: wait for retracement
  • 2:45 - EMA as resistance level
  • 3:45 - Avoid entering after consecutive candles
  • 4:20 - Example of uptrend entry
  • 5:00 - Risk management: placing more money to offset loss
  • 6:30 - Final trade example and summary of rules

Strategy overview

Trend following with exponential moving averages means letting a fast and a slow average define which side of the market is in control and trading only in that direction. What separates this entry is where that idea is being applied: RAIDER GM's video is a binary options video worked on a 1-minute chart, and its title — "I STOPPED TRADING REVERSALS AND FOLLOWED TRENDS" — frames the method as a personal course correction rather than a discovery. Introducing a setup by what the trader stopped doing is a less common opening than a list of what it does.

The marked structure of the video is short and reads as a single argument. It opens on trend trading as an idea, moves to identifying a trend with moving averages, explains the settings, then treats the crossover as the sign that the trend has switched — and immediately follows it with the instruction to wait for a retracement instead of entering on the cross itself. The closing segment looks at the average as a level that price meets, rather than as a line that fires signals. Read in order, that sequence is interesting precisely because of the U-turn in the title: waiting for a pullback is the reversal instinct relocated, not abandoned — the trader is still looking for price to turn, only now in the direction the trend has already established.

The instrument matters here. Binary options settle at a fixed expiry for a fixed payoff, which compresses trend following into being right about direction at one particular moment, rather than the open-ended "let the winner run" version the phrase usually implies on spot or futures charts — and a 1-minute chart shortens that window further. No rule set was extracted from this video, so this page covers the concept and how the source frames it; the title is a first-person account of a change in approach, with no results attached to it.

Topics

ema strategy · trend following strategy · binary options strategy · 1 minute strategy · exponential moving average · trading strategy · technical indicators · retracement strategy · dynamic support resistance · otc trading strategy · moving average strategy

Frequently asked questions

What is an EMA trend following strategy?

It uses exponential moving averages — typically a faster and a slower one — to define which direction the market is currently trending in, and restricts trades to that direction. The averages act as the trend filter rather than as a standalone buy or sell signal.

How is trend following different on binary options?

Binary options settle at a fixed expiry for a fixed payoff, so the trade is judged on direction at a single moment in time. That removes the open-ended part of trend following — there is no letting a winner run — and shifts all the emphasis onto timing the entry within the trend.

Why would a trend strategy wait for a retracement instead of entering at the moving average cross?

Entering immediately at a cross means buying or selling at the point where price has already extended away from the averages. Waiting for a pullback toward the average is a way of getting a reference level for risk and avoiding the worst of a false switch, at the cost of sometimes missing the move entirely. The source video makes this wait an explicit part of its approach.

Are this strategy's full rules available on this page?

No structured rule set was extracted from this video, so the page covers the concept and the source's framing rather than a rule-by-rule breakdown. Strategy Decoder extracts the structure of strategies from video sources where the material supports it, and clearly marks the entries where it does not.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

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