EMA and Fibonacci Rules for a Short-Only Trend Strategy

Summary

This short-only strategy combines four exponential moving averages with Fibonacci levels calculated from a rolling range of the 9- and 55-period EMAs. It opens a short when the prior close is below the calculated range high and the 21-period EMA is below the 55-period EMA. The displayed Fibonacci levels are also used in managing exits: the script closes a profitable short after price crosses above the 200-period EMA, or closes under a separate condition involving the 0.764 retracement level when the entry condition no longer holds.

The accompanying description characterizes the approach as taking frequent small losses in pursuit of larger downside moves and says it has no preset stop-loss or take-profit. It reports a 0.01% commission assumption and says the lookback can be varied by asset and timeframe. No performance figures or detailed test results are included. Although the description says there are no immediate re-entries, the supplied logic does not show an explicit re-entry lockout; that claim should be checked against actual platform behavior. Position sizing is set to 100% of equity in the published strategy settings, which makes risk control an important consideration.

Key ideas

• The entry setup combines a prior-close condition against a rolling EMA-derived high with a bearish EMA relationship.
• Rolling Fibonacci levels are derived from the 9- and 55-period EMA range.
• A profitable short can close when price crosses above the 200-period EMA, while another condition uses the 0.764 level.
• The strategy has no preset stop-loss or take-profit and uses a stated commission assumption of 0.01%.
• The published text gives no performance results, and its no-immediate-reentry claim is not clearly enforced by the shown logic.

Tags

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