EMA and RSI Entries with ATR-Based Stops and Targets

Summary

This sample strategy uses a pair of exponential moving averages as a trend filter, then times entries with RSI and price position. Long entries require the fast EMA to be above the slow EMA, RSI to cross above 40, and the close to exceed the fast EMA. Short entries apply the inverse trend and price conditions, with RSI crossing below 60. Stops and profit targets are set from the entry bar's close using multiples of ATR: 1.5 for the stop distance and 3 for the target distance.

The script also specifies 21- and 50-period EMAs, 14-period RSI and ATR inputs, 20 percent of equity per trade, and a commission setting of 0.05 percent. These are sample settings, not evidence of effectiveness. The page labels it an aggressive day-trading example for testing, but provides no strategy report or market-specific backtest results. Actual behavior and risk will depend on the instrument, timeframe, execution assumptions, and how the platform handles order sizing and exits.

Key ideas

• The EMA pair sets the directional filter, while RSI crossovers and price relative to the fast EMA trigger entries.
• Long entries use an RSI cross above 40; short entries use a cross below 60.
• ATR multiples define stop and target distances from the signal bar's close.
• The sample allocates 20 percent of equity per trade and specifies a commission rate.
• The document provides no performance evidence, and its sample settings require market-specific evaluation.

Tags

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