EMA Crossover Entries with a Percentage Profit Target

Summary

This strategy opens a long position when a fast exponential moving average crosses above a slow one, then closes it when the fast average crosses below or price reaches a configured profit target. The stated defaults are a 3-period fast EMA, a 30-period slow EMA, and a 100% profit percentage. Although the overview describes both rising and falling crossovers, the source code enters long positions and does not activate short entries.

The published backtest settings specify BTC/USDT Binance futures, with daily strategy periods and hourly base data over about a year. No performance results are reported, so the settings alone provide no evidence of profitability. The document notes that EMA signals lag and can misread direction, a large target may delay profit taking through a reversal, and exiting too soon can miss part of a trend. It suggests comparing EMA settings, adding confirmation indicators, and adjusting targets to market conditions. The target rule is tied to average entry price; the document does not describe a separate protective stop.

Key ideas

• A fast EMA crossing above a slow EMA triggers a long entry.
• A downward crossover or a price target closes the long position in the source.
• The listed defaults are 3 and 30 periods for the EMAs and a 100% target.
• The published settings identify a BTC/USDT futures backtest but provide no performance results.
• EMA lag and target timing can cause missed entries, delayed exits, or early exits.

Tags

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