EMA Breakout with Volume Confirmation and a Trailing Stop

Summary

The described system enters long when price crosses above a 200-period exponential moving average, using volume as a confirmation filter. The stated default requires current volume to exceed 1.5 times its 20-period average. At entry, the source sets a stop two times its calculated average true range below the close; while a position is open, the stop can rise to the period’s lowest low and the trade closes when price falls below that level.

The published setup is an hourly ETH/USDT futures backtest spanning roughly a year, but no performance statistics are included. There are discrepancies between the prose and code: the source calculates ATR from a one-period true-range average, and its trailing low is updated even outside a position. The prose also describes a 20-period lowest-low stop, which is not the code’s ATR lookback. These details make implementation and independent testing important. The rules are long-only and may miss moves that begin below the EMA; volume filtering can also fail to distinguish every false breakout.

Key ideas

• Long entries require a close crossover above the 200-period EMA and, by default, elevated volume.
• The stated volume threshold is 1.5 times the 20-period average.
• The code sets an initial stop from two times its calculated true-range average, then may trail it using a rolling low.
• The hourly ETH/USDT futures setup provides no reported performance results.
• The written description and source differ on ATR and stop calculation details.

Tags

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