ATR Trailing Stops with EMA Crossovers and Partial Profit-Taking

Summary

This strategy opens a long position when the 5-period EMA crosses above the 20-period EMA. It sets an initial stop 1.5 ATR below entry and a profit target 3 ATR above entry. As price advances through ATR-based levels, it raises the stop to protect more of the unrealized gain. At the profit target, it closes half the position and later exits the remainder if the adjusted stop is hit.

The document explains the intended risk controls and gives a BTC/USDT futures backtest configuration, but it reports no performance results. Its stated limitations include ATR lag and exposure to price gaps, EMA signals that may fail to catch reversals, and losses after a partial exit if price turns. It also notes that the ATR multipliers may need adjustment across markets and suggests testing additional trend filters, stop methods, and partial-exit settings. The description should be treated as a strategy outline rather than evidence of profitability.

Key ideas

• A 5-period EMA crossing above a 20-period EMA triggers a long entry.
• The initial stop is set 1.5 ATR below entry, then ratcheted upward as price rises.
• A move 3 ATR above entry triggers a partial close, with the remaining position managed by the stop.
• ATR lag, gaps, reversals, and parameter sensitivity are identified as risks.
• The published backtest settings identify a market and period but provide no reported performance statistics.

Tags

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