EMA Crossover Entries with Candle Filters and Fixed Bracket Exits

Summary

The strategy combines a fast and slow exponential moving average crossover with a candle-body filter. A long entry requires the fast average to cross above the slow one, the close to finish above the fast average, and the candle body to occupy at least 30% of its high-low range. Shorts use the inverse conditions. The strategy enters only while flat and sizes positions at 10% of equity by default.

Each position receives a fixed percentage target and stop: the stated defaults seek 12% in profit against a 6% loss, producing a nominal 1:2 reward-to-risk ratio. The accompanying description also claims support and resistance breakout confirmation and recommends intraday timeframes, but those rules do not appear in the supplied code: pivot levels are drawn, while entries depend on EMA crosses and candle strength. No backtest evidence is provided, so the ratio alone does not establish profitability; actual outcomes also depend on execution costs and market behavior.

Key ideas

• Long and short entries require an EMA crossover, a close on the corresponding side of the fast average, and a candle body at least 30% of its range.
• The strategy enters only when flat and defaults to risking 10% of equity per position.
• The stated default target is 12% and stop is 6%, a nominal 1:2 reward-to-risk setup.
• Pivot highs and lows are drawn, but the supplied entry conditions do not use them as breakout triggers.
• The document offers no backtest results to support claims of profitability or timeframe suitability.

Tags

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