EMA Crossover Entries with ATR Stops and Targets for Futures

Summary

This trend-following system enters long when a 9-period EMA crosses above a 21-period EMA and short when it crosses below. It uses a 14-period ATR to set stop and target distances: the stated defaults place the stop 1.5 ATR from the current price and the target 3 ATR away. The prose also describes risking 2% of account capital per trade and frames the wider target as a 2-to-1 reward-to-risk setup.

The document discusses risks from false crossovers in ranging markets, slippage, parameter sensitivity, and wide stops during high volatility. It proposes trend filters, time restrictions, partial exits, and trailing stops, but provides no measured results supporting these changes. There are material inconsistencies in the published details: the strategy is described as an MYM futures system, while backtest settings specify BTC_USDT futures. The source strategy also sets order size to 10% of equity and does not use its risk-percent input to calculate position size, so the claimed 2% risk control is not demonstrated by the code. No backtest performance results are included.

Key ideas

• Long and short signals come from crossovers of 9- and 21-period EMAs.
• The stated stop and target distances are 1.5 and 3 ATR, respectively, using a 14-period ATR by default.
• The prose claims 2% account risk per trade, but the source uses a 10%-of-equity order size and does not apply the risk input to sizing.
• The MYM futures description conflicts with backtest settings for BTC_USDT futures.
• Suggested filters and exit refinements are not accompanied by performance evidence.

Tags

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