EMA 5/13/26 Crossovers with Volume, Risk Caps, and Timed Exits

Summary

This strategy enters when a 5-period EMA crosses both the 13-period and 26-period EMAs in the same direction, provided current volume exceeds its 20-period average. It records the signal candle’s high and low and uses the relevant extreme as the initial stop reference. The stop distance is capped at a specified percentage of entry price. A reward-to-risk multiplier is chosen from the signal candle’s percentage range, with a lower target multiple for larger candles and a higher one for smaller candles.

The script closes an existing opposite position when a new directional signal appears and also closes all positions at a configurable hour and minute. It provides bar-close alerts for buy and sell conditions. The document contains rules and implementation details, but no reported backtest results or evidence that the risk cap, target logic, or intraday timing improves outcomes. Its behavior also depends on chart timeframe and the exchange or instrument’s time settings.

Key ideas

• A long or short signal requires the 5-period EMA to cross both slower EMAs in the same direction.
• The signal is filtered by volume exceeding its moving average.
• Stops reference the signal candle and are constrained by a maximum percentage risk cap.
• The target multiple varies according to the signal candle’s percentage range.
• Opposite positions can be closed on reversal signals, and all positions are closed at a configured time.

Tags

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