EMA 40 Pullback Entries with ADX Trend Filtering and Pyramiding

Summary

This strategy uses the direction of a 40-period exponential moving average to define trend changes and combines that direction with an ADX threshold to permit trades. Its base long entry follows an upward EMA slope flip when ADX is strong enough. An optional pullback re-entry arms after price approaches the EMA within an ATR-based distance, then requires a bullish recovery above the average. Optional EMA cross signals can also trigger entries or exits, using either closing-price crosses or wick-based tests. The strategy can pyramid up to three entries and enforces a minimum bar gap between entries.

A downward EMA slope flip closes positions, as can an enabled sell-cross signal. The script includes a date window and specifies commission, slippage, and order-processing assumptions, but the supplied excerpt stops before all plots and any performance report. It does not show results or establish that the parameters generalize across assets or timeframes. The pullback and crossover options create materially different entry behavior, so evaluation would need to specify which settings are active and account for realistic costs.

Key ideas

• The main trend filter is the slope of a 40-period EMA, paired with an ADX minimum.
• An optional pullback entry requires an ATR-proximity condition followed by a bullish close above the EMA.
• EMA cross entries and exits can be detected using closes or wick-based conditions.
• The strategy allows pyramiding up to three entries and applies a minimum spacing between entries.
• The excerpt supplies execution cost assumptions but no performance evidence or full report.

Tags

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