Why Prop Firms Banned Alex Ruiz: The Ultimate 50 EMA Strategy for Consistent Profits
Imagine being so consistent at trading that proprietary trading firms actually ban you.
That’s the reality for Alex Ruiz, widely considered Spain’s most recognized retail trader. With a 12-year audited track record and a background as a former bank analyst, Alex didn't build his empire using complex "Smart Money Concepts" or flashy indicators. He built it using one simple, objective tool: The 50 EMA.
In a recent deep-dive interview, Alex peeled back the curtain on the exact step-by-step system he’s used for over a decade. Here are the biggest takeaways you can apply to your own trading today.
📈 The Core Strategy: Why the 50 EMA is Your Best Friend
In an online world full of traders arguing over Fair Value Gaps and Order Blocks, Alex takes a different route. He calls moving averages "objective conditions."
Here is his simple, 3-step top-down analysis:
- Daily Timeframe (The Bias): Alex doesn’t look at zones from six months ago. He looks at the Daily chart only to understand where the price is heading in the next 2 to 3 days. If the bias isn’t clear, he walks away.
- 1-Hour Timeframe (The Trend): This is where the magic happens. Alex uses the 50 Exponential Moving Average (EMA) to define the trend. If the price is above the 50 EMA, he is only looking for buys. If it’s below, only sells.
- 5-Minute Timeframe (The Execution): He waits for a pullback to the 1-Hour 50 EMA. Instead of placing a limit order and hoping for the best, he drops to the 5-minute chart to wait for a trend change (a cross). He executes market orders only after confirmation of rejection.
The Golden Rule: If the 1-Hour trend isn't perfect, but the Daily chart is, he can still take the trade. But one of the two must be perfect.
🛡️ Risk Management: The "Anti-Gamble" Approach
Coming from a wealth management background at a bank, Alex’s primary focus isn't getting rich quick—it’s capital preservation.
- The Impulse Rule: If Alex enters a trade and sees an impulse followed by a slow, sluggish pullback without fast continuation, he assumes sellers are defending the level. He exits immediately or moves his stop loss to break-even. He refuses to stay in a "problematic" trend.
- High Win Rate > High Risk-Reward: While many traders hunt for 1:3 or 1:5 risk-to-reward ratios, Alex prefers a 57% win rate with a 1:1 ratio. He wants to know if he is wrong immediately, take his small loss or small win, and move on with his day.
🧠Trading Psychology: Attach to "How," Not "What"
The most powerful part of Alex’s interview wasn't technical—it was psychological. He drew a brilliant distinction between a Trader and a Gambler: A trader has a mathematical edge; a gambler does not.
To illustrate this, he used two powerful analogies:
- The Coin Flip: If you flip a coin and get heads 9 times out of 10, it feels like heads is the "better" side. But mathematically, it's still 50/50. Trading is the same. You must trust your edge over a series of 1,000 trades, not just the last 10.
- The World Cup Analogy: In life, we are taught to attach to the result (winning the game). In trading, you must attach to the process (how you played the game). If you execute your strategy perfectly and take a loss, you still won.
On Revenge Trading: Alex notes that losing $500 triggers the same "fight or flight" response in our brains as a lion chasing us in the jungle 1,000 years ago. Revenge trading is your brain trying to "hunt" to survive. Recognizing this biological misfire is the key to stopping it.
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