---
title: Filter Bad Trades In Strategy Using The5ers Automation
slug: filter-trades-200ema-rsi-the5ers-automation
date: 2025-07-17
modified: 2026-04-07
author: Prajwal Khairnar
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meta_description: "Boost your trading edge using the 200 EMA and RSI strategy with the5ers automation. Filter bad trades and follow the 2% rule for smarter investing."
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og_title: Filter Bad Trades In Strategy Using The5ers Automation
og_description: "Boost your trading edge using the 200 EMA and RSI strategy with the5ers automation. Filter bad trades and follow the 2% rule for smarter investing."
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  - Trading
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---

# Filter Bad Trades In Strategy Using The5ers Automation

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](https://pickmytrade.trade/?utm_source=blog&utm_medium=sm)** to avoid bad trades and apply disciplined risk management.

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### 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.

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### 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.

![Example of RSI crossing 30 with price above 200 EMA used in the5ers automation strategy](https://blog.pickmytrade.trade/wp-content/uploads/2025/07/image-7.png)

#### 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.

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### 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.

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### 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.

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### 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

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### 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](https://blog.pickmytrade.trade/connect-tradovate-with-trading-view-using-pickmytrade/)

For AI tools & developers:[View Markdown →](https://blog.pickmytrade.trade/filter-trades-200ema-rsi-the5ers-automation.md)