EMA Crossover DCA with Dual Trailing Stops
Summary
This strategy uses a fast and slow EMA crossover to enter long trades, then adds up to two safety orders if price falls. Safety order spacing can use ATR multiples or fixed percentage declines, so entries can adapt to volatility or follow preset levels. Position sizes are specified for a base order and each safety order, and the strategy tracks the average entry price after additions.
Two exit mechanisms track price from the entry: a standard stop that follows the highest price, and a tighter profit-locking trail that activates after a profit threshold. A downward EMA crossover also closes the position. The description identifies parameter sensitivity, whipsaws in sideways markets, and losses during strong declines as risks. It provides configurable examples but no performance results, and the code excerpt shows order and exit logic rather than evidence that the approach is profitable.
Key ideas
- A fast EMA crossing above a slow EMA generates a long entry signal.
- The strategy can add two safety orders at ATR-based or fixed percentage intervals as price declines.
- A standard trailing stop and a tighter profit-locking trail provide separate exit triggers.
- A downward EMA crossover closes the position, while a cooldown and date filter can constrain trading.
- Parameter sensitivity, sideways-market whipsaws, and continued losses during sharp declines are stated risks.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.