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Dual-Path EMA Strategy for Breakout and Pullback Entries

Article Strategy library · Author: ianzeng123

Summary

The strategy uses a short, medium, and long EMA alignment to define an upward trend, then offers two long-entry paths. MOU seeks either a resistance breakout supported by price action, volume, and MACD conditions, or a pullback after a breakout. KAKU is a more restrictive pullback setup requiring a larger set of trend, candle, MACD, and volume confirmations. The document recommends favoring KAKU when both paths signal and describes percentage-based take-profit and stop-loss levels plus a maximum holding period.

The document gives claimed backtest comparisons and signal frequencies, but provides no underlying results table or methodological detail to verify them. Its published settings specify ETH/USDT futures over a stated date range. The source also includes a “publish assist” entry based on a separate EMA crossover when no trades have closed, which may introduce trades outside the stated MOU and KAKU rules. The code is long-only despite the title’s broad trend-capture framing. The text warns that sideways markets can produce false signals and that historical outcomes do not guarantee future performance.

Key ideas

  • EMA alignment defines the trend context for two long-entry paths: breakout and pullback.
  • MOU uses resistance, volume, candle size, and MACD conditions to qualify entries.
  • KAKU applies stricter pullback confirmations and is described as producing fewer signals.
  • The strategy uses percentage take-profit and stop-loss levels and a maximum holding period.
  • The claimed backtest improvements are not accompanied by supporting results, and the code includes a separate assist-entry rule.

Tags

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