Elder-Ray Trading Rules with Same-Timeframe and Higher-Timeframe EMA
Summary
The document presents an Elder-Ray system combining an exponential moving average (EMA) with Bulls Power and Bears Power. In the single-timeframe version, an upward EMA trend and a negative but rising Bears Power reading set up a buy; a pending buy stop is placed above the prior two-day high, with a protective stop below the recent low. The sell rules mirror this logic in a downward trend, using positive but falling Bulls Power and a sell stop below the prior two-day low. The examples focus on daily futures and stocks.
A second version uses the EMA trend from a higher timeframe, following the “Triple choice” approach, while the power indicators operate on the entry timeframe. The article says signals arise on pullbacks within established trends and may be infrequent on a single instrument, suggesting that a broad universe can increase opportunities. It describes EA construction, symbol selection, and volume considerations, but offers no quantitative performance results. The implementation is intended for netting accounts, and multi-symbol tests may require substantial time and memory.
Key ideas
- The system combines EMA trend direction with the opposing side’s power oscillator to identify pullbacks.
- Buy conditions require an upward EMA trend and Bears Power below zero but rising.
- Sell conditions require a downward EMA trend and Bulls Power above zero but falling.
- Entry orders are placed beyond recent highs or lows, with stops beyond the opposite recent extreme.
- A higher-timeframe EMA can provide the trend filter while power indicators run on a lower timeframe.
- The article gives implementation guidance but does not report measured strategy performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.