9/21 EMA scalp
The 9 and 21 EMA crossover is one of the most common scalping setups, and on its own it whipsaws badly. This version adds filters to keep only the cleaner signals on 3-minute NIFTY futures bars: the crossover candle must agree with the trend or VWAP, carry a volume spike, not come from a choppy market and not be stretched far from the average. It trades two lots, banking half at 1.5 times the risk and the rest at 2.5 times.How it trades
Results
PRE-BUILT · DEFAULTSWhere it made and lost money
The scalp needs movement. In this test trend days earned ₹39,791 over 23 trades and evenings with India VIX above 14.5 led to ₹38,356 over 30 trades, as crossovers on active days carried far enough to reach the 1.5R and 2.5R targets. Quiet sessions lost ₹25,364 over 40 trades with a 30% win rate: even after the chop filter, small ranges meant the candle stop was hit before the first target. Choppy days were positive, ₹22,445 over 25 trades, because wide swings still reached the targets. Days after a normal VIX lost ₹7,675 over 46 trades.
About this strategy
- Build 3-minute and 15-minute bars from near-month NIFTY futures, with a 9 and 21 EMA on the 3-minute closes.
- Long signal: the 9 EMA crosses above the 21 EMA on a green candle whose volume beats each of the three candles before it. Shorts are the mirror image.
- Filters: price on the right side of the session VWAP, or the last two 15-minute bars trending the same way; the last four 15-minute bars must not be stuck in a range under 0.2% of price; and the close must be within 0.15% of the 21 EMA.
- No entries before 09:30, between 11:30 and 13:00, after 14:45, or on a NIFTY weekly expiry day.
- Buy or sell two lots on the tick after the signal candle closes. The stop is the signal candle's low (or high); if that candle is unusually wide, the previous candle's extreme is used.
- First lot targets 1.5 times the risk. Once it is hit, the second lot's stop moves to the entry price and its target is 2.5 times the risk.
- Anything open at 15:15 is squared off. One trade at a time.
Why traders use it
Short-term EMA crossovers capture the start of small intraday swings, and the 9/21 pair is a favourite because it reacts quickly without being as noisy as shorter pairs. The filters address its well-known weakness: crossovers in a flat market. Booking half early and moving the stop to cost on the rest is a common money-management habit that turns many trades into small wins or scratches while leaving room for a bigger move.
The year in plain words
On NIFTY futures from 1 Oct 2025 to 30 Sep 2026, the filters let through 89 trades. Only 39% were winners, but winners averaged ₹5,031 against ₹2,555 for losers, giving ₹38,120 before costs and a profit factor of 1.28. 54 trades ended at the candle stop, 22 reached the 2.5R target and 10 were closed at cost after the first target. November and February added over ₹14,000 each, while March lost ₹6,942. After ₹20 per order and bid-ask slippage on two lots, the result is a ₹3,666 loss.
What the settings do
Risks
- Trading costs are large relative to the profit per trade, enough to erase the pre-cost gain.
- Stops are only a candle away, so normal noise stops out most trades; 61% lost.
- Two lots of NIFTY futures is a sizeable position for a scalp; the worst trade lost ₹9,540.
- The continuous futures series jumps at each monthly expiry, which can produce false crossovers for a few bars.
Who it suits
Active intraday traders who scalp futures on short charts, can execute quickly or automate, and want to see how far filters can rescue a basic crossover once costs are counted.
Questions traders ask
What is the 9/21 EMA crossover strategy?
It buys when the 9-period exponential moving average crosses above the 21-period one and sells when it crosses below. On short bars like 3 minutes it is used for scalping small intraday swings.
Is the 9/21 EMA scalp profitable on NIFTY?
In this backtest from 1 Oct 2025 to 30 Sep 2026 it made ₹38,120 before costs but lost ₹3,666 after ₹20 per order and bid-ask slippage, with a ₹30,458 maximum drawdown before costs. Statutory charges would add to the loss. Past results do not guarantee future results.
Why book half the position early?
Taking half off at 1.5 times the risk and moving the stop on the rest to entry means that once the first target is hit, the rest of the trade can at worst break even before costs. The second half can still run to 2.5 times the risk. It lowers the average win but smooths results.
What does the chop filter do?
It looks at the last four 15-minute bars and skips the signal if their combined high-to-low range is less than 0.2% of price. Crossovers inside such a tight range usually reverse quickly.