EMA Crossovers and Bollinger Band Breakouts with ATR-Like Stops
Summary
This strategy combines short and long exponential moving average crossovers with Bollinger Band breakouts. A long signal requires the short EMA to cross above the long EMA while price closes above the upper band; a short signal uses the reverse crossover and a close below the lower band. An optional EMA trend filter can screen entries, and the inputs also include optional extra band-cross checks and inside-bar coloring.
Stops use the recent lowest low for longs and highest high for shorts. The source calculates targets as a multiple of the distance between entry and stop, with a default factor of 1.6. This differs from the translated description, which gives a different short target and describes the long target as a multiple of entry price. Published backtest settings cover BTC/USDT futures over a brief period, but no performance figures are provided. The document flags parameter sensitivity and potentially wide stops; its claims of good backtest performance are not supported with detailed results.
Key ideas
- Long entries combine an upward EMA crossover with a close above the upper Bollinger Band.
- Short entries use a downward EMA crossover and a close below the lower Bollinger Band.
- An optional EMA trend filter can be used to screen trades against the broader direction.
- Stops use recent price extremes, while the source sets profit targets as a multiple of entry-to-stop distance.
- The translated description and source code disagree about how profit targets are calculated.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.