ADX Trend Filter and EMA Pullback Entries with ATR-Based Exits

Summary

This Expert Advisor combines a trend strength filter, a pullback trigger, and volatility-scaled exits. It requires ADX to be above a threshold and rising on closed bars. A pullback event is defined by the price-to-EMA distance, measured in ATR units, crossing below a configured ratio after having been at or above it. The direction comes from comparing the positive and negative directional indicators: the stronger side sets a buy or sell signal.

The stop distance is a multiple of ATR, while the target distance scales that stop by a risk-reward setting. The EA evaluates signals once per new bar and allows only one open position per symbol; direction can be limited to buys or sells. Defaults include H1 indicator calculations, although the indicator timeframe is configurable. The document describes the rules and settings but provides no performance results. It recommends testing on the intended symbol and timeframe, and does not establish that the approach works across markets or conditions.

Key ideas

• Rising ADX above a set threshold is used to screen for strengthening trends.
• A pullback signal depends on the price-to-EMA distance crossing a configured ATR-based level.
• The relative values of the positive and negative directional indicators choose trade direction.
• ATR sets the stop distance, and a risk-reward input scales the profit target from that stop.
• The EA evaluates closed bars and permits only one position per symbol at a time.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.