Dual EMA Crossovers with Trailing Stops and Session Filters
Summary
This strategy uses two zero-lag EMA lines, with lengths set to 5 and 34, to identify trend changes. It enters long when the faster line crosses above the slower one and short when it crosses below. It also allows entries when price crosses the faster line in the direction of the EMA trend, subject to an optional trading-session filter.
Position exits use a take-profit target and either a fixed stop or a trailing stop based on the trade’s most favorable price. The document lists configurable session hours, trade size, stop and target distances, and price source. Published settings specify a Binance BTC/USDT futures backtest covering November 2023, but no performance results are reported. The explanation calls the approach a mid-term trend strategy; however, the stated 5-minute and 34-minute description does not align clearly with the hourly backtest settings, and the source implements zero-lag EMA calculations rather than ordinary EMAs. Lag, parameter choice, and stop placement are noted risks.
Key ideas
- A fast zero-lag EMA crossing above or below a slower line triggers directional entries.
- Price crossing the fast average can also trigger entries when aligned with the average trend.
- A session filter can restrict when entries are allowed.
- Exits combine a profit target with either a fixed stop or a trailing stop.
- The published backtest settings give a period and market but report no performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.