EMA Crossover Entries with ATR Stops and Staged Profit Targets

Summary

This strategy enters long or short when a fast EMA crosses the slow EMA and the trend direction changes. By default, it also requires the signal candle to close in the trade’s direction. The configurable EMA lengths define the trend signal, while ATR sets a stop beyond the signal candle’s low for longs or high for shorts.

A risk-to-reward input sets the final target, with exits divided across intermediate targets and the final target. The script plots the EMAs, signal labels, stop and final target, and provides alerts. Its code specifies a commission assumption and full-equity position sizing, but the document reports no backtest results or evidence that the strategy performs well. Results may depend on the asset, timeframe, execution assumptions, and parameter choices; the description’s claim that it works well on autopilot is unsupported by reported analysis.

Key ideas

• Entries follow a fast and slow EMA trend change, optionally confirmed by candle direction.
• ATR places the stop beyond the signal candle’s high or low.
• The risk-to-reward setting determines a final target and staged partial exits.
• The document provides no performance results to validate the strategy’s effectiveness.

Tags

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