ALEX Trend-Following Entries on Retracements to the Eight-Period EMA

Summary

This strategy seeks to join a move after price has traveled more than a specified pip distance from its last touch of the eight-period exponential moving average. Once that move establishes a bullish or bearish condition, the system places a limit order near the EMA to enter on a retracement. The example uses a fixed stop and profit target, restricts trading to set hours, and describes position sizing based on account equity and a stated risk allowance. It was originally described for GBP/USD on an hourly chart, with the author also trying index markets.

The evidence is a personal report of profitable discretionary trading, without a full record or independent performance analysis. The author says backtests overstate the strategy’s results and warns that earlier trades used excessive risk. The fixed stop and target, missed discretionary entries, and limited account of live trading leave important execution and robustness questions unanswered.

Key ideas

• The setup identifies a directional move exceeding a specified pip distance from the last touch of the eight-period EMA.
• A limit order near the EMA aims to enter when price retraces after the qualifying move.
• The example applies fixed stop and target levels, trading-hour limits, and equity-based position sizing.
• The author reports personal trading results but cautions that backtests appear overly optimistic.
• The strategy is described for an hourly currency chart and was also tried on index markets.

Tags

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