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Buy-Only EMA Crossover Entries with Delays and Trailing Exits

Article Strategy library · Author: ayusattv

Summary

This chart strategy takes long positions when a fast exponential moving average crosses above a slower one. The documented defaults set the averages to 9 and 19 periods, and an entry-delay setting allows the signal to be acted on a chosen number of bars after the crossover. The code plots both averages and marks the crossover and delayed entry on the chart. It contains no short-entry rule, so it expresses a bullish directional bias.

Trade management offers either fixed point-based stop and target levels or an optional trailing-stop mode, alongside a fixed stop. The accompanying description presents delayed entries as a way to reduce noise, but supplies no test demonstrating that effect. The excerpt also gives no market, timeframe, transaction-cost assumptions, or performance results. Point distances may behave differently across instruments, and the strategy's buy-only design limits its use in falling or range-bound conditions.

Key ideas

  • A long entry is triggered by an upward cross of the fast EMA over the slow EMA.
  • The crossover signal can be delayed by a configurable number of candles.
  • Exits use either fixed point-based stop and target levels or a trailing stop with a fixed stop.
  • The strategy takes long positions only and provides no short-side logic.
  • The document gives no backtest evidence for the claimed noise reduction or strategy performance.

Tags

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