EMA 25/100 Long Breakout with Candle-Based Stop and Breakeven

Summary

This long-only BTC futures strategy uses an upward cross of the 25-period EMA above the 100-period EMA as its entry signal. It places the initial stop at the low of the most recent bearish candle below the slower EMA and sets a profit target at three times the distance from entry to that stop. If the position reaches a 2% gain, the stated rule moves the stop to the entry price.

The document gives a Binance BTC/USDT futures daily backtest window from late 2019 to December 2024, but includes no performance figures. The source calculates stop and target from the current close when a crossover occurs, so the stop may depend on the availability of a qualifying prior candle. The breakeven adjustment is nested within the entry block, which may prevent it from updating on later bars as the description implies. Range-bound conditions, false crosses, and slippage are identified as risks; the proposed filters and parameter changes are optimization ideas rather than validated improvements.

Key ideas

• A 25-period EMA crossing above a 100-period EMA triggers a long entry.
• The initial stop uses the latest bearish candle low below the slow EMA.
• The profit target is set three times the entry-to-stop distance, with a stated breakeven adjustment after a 2% gain.
• The daily BTC futures backtest period is disclosed without results.
• The source's breakeven logic appears inside the entry condition, limiting evidence that it adjusts the stop on later bars.

Tags

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