Dual EMA Crossover with Prior-Bar Stops and Two-to-One Targets

Summary

This strategy takes long or short positions when a 15-period EMA crosses a 50-period EMA. For a long, it places the stop at the lowest opening price among the prior two candles; for a short, it uses the highest opening price among those candles. The profit target is set at twice the distance from the entry close to the stop, creating a nominal two-to-one reward-to-risk target. The script sizes trades at 30% of account equity and plots the stop and target levels. Published backtest settings identify daily BTC/USDT futures data over a stated historical period, but no performance statistics are included.

The document notes that crossover signals can whipsaw in sideways markets, execution can be affected by slippage, and a fixed equity allocation or prior-candle stop may not suit every condition. Although the prose describes automatic adjustment for volatility, the shown stop rule is based on prior candle opens rather than a volatility indicator. The stated reward-to-risk target does not establish realized outcomes, and the source offers no measured evidence of profitability.

Key ideas

• A 15-period EMA crossing a 50-period EMA triggers a trade in the crossover direction.
• Long stops use the lowest prior opening price across two candles, while short stops use the highest.
• The profit target is set at twice the distance between the entry close and the stop.
• The script allocates 30% of account equity to each trade.
• The document reports backtest settings but no performance results.

Tags

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