EMA and MACD Crossover Sequence with Fixed-Risk Position Sizing

Summary

This strategy uses a staged sequence of EMA and MACD signals to time trades. For longs, a fast EMA crossing above a slower EMA starts the setup; the MACD difference then moves above zero, makes a bearish crossover while still positive, and later crosses bullish for entry. The short sequence mirrors these conditions below zero. The stop is the lowest low or highest high recorded during the setup zone, and the target is set at twice the entry-to-stop distance.

Position size is calculated from account equity and a configurable risk percentage divided by the stop distance. The script includes phase resets for opposing EMA crosses and momentum conditions, along with chart markers and plotted stop and target levels. It supplies rules and implementation details, but no performance results or validation. Its risk setting can allow a substantial fraction of equity to be exposed per trade, and the code does not establish how sizing behaves across instruments with different contract values or point economics.

Key ideas

• Long entries require an EMA bullish cross, positive MACD, a positive-zone bearish MACD cross, and a later positive-zone bullish cross.
• Short entries apply the inverse sequence below the MACD zero line.
• Stops use the extreme price reached during the signal setup, while targets use a fixed reward-to-risk multiple.
• Position size scales with account equity and the configured risk percentage relative to stop distance.
• The document provides strategy logic but no backtest evidence or instrument-specific sizing validation.

Tags

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