Trading smart means filtering out low-probability setups and protecting your capital. Even strong strategies can fail without proper risk control. In this post, we’ll show how to use the 200 EMA and RSI filter alongside The5ers automation platform to avoid bad trades and apply disciplined risk management.
Why Use The5ers Automation?
The5ers automation helps traders automate proven strategies, manage risk with precision, and execute trades without emotional bias. Integrating smart filters like the 200 EMA and RSI into your automated plan improves trade quality and consistency.
Use Smarter Signals: 200 EMA + RSI
Trend filtering is a key upgrade for any strategy. Instead of taking every setup blindly, combine trend direction (via 200 EMA) with momentum signals (via RSI) for better timing.
1. 200 EMA – Spot the Trend
The 200 Exponential Moving Average (EMA) is a long-term trend indicator. If the price is above the 200 EMA, the market is in an uptrend. If it’s below, the trend is bearish. This helps filter out trades that go against the overall flow.
2. RSI – Spot Reversals
The Relative Strength Index (RSI) shows overbought and oversold conditions. When the RSI crosses above 30, it signals a potential reversal from an oversold condition.
How to Use the Filtered Entry
Follow this checklist for smarter entries with The5ers automation:
- Add the 200 EMA to your chart.
- Add RSI and wait for it to rise above 30 from oversold.
- Only buy if the price is above the 200 EMA.
- This combo means price is trending up and may continue.
Apply the 2% Risk Rule
Even with automation, risk management is non-negotiable. Stick to the 2% rule:
- Never risk more than 2% of your account on one trade.
- Set stop-losses accordingly.
- This rule ensures you survive losing streaks and protect capital over the long term.
Why The5ers Automation Matters
Using The5ers automation allows you to:
- Automate entry rules like RSI > 30 and price > 200 EMA
- Execute trades faster and avoid emotional decisions
- Apply risk management rules on autopilot
- Analyze results and refine your strategy
Final Thoughts
Smart trading isn’t about finding a perfect setup—it’s about filtering out bad trades and protecting capital. With the 200 EMA and RSI strategy, combined with The5ers automation, you can trade with more confidence and consistency.
Start applying this setup today and automate it for better results!
Also Checkout: Connect Tradovate with Trading view using PickMyTrade
