EMA Crossovers with Fibonacci-Based Stops and Targets

Summary

This strategy combines fast and slow EMA crossovers with Fibonacci retracement levels calculated from the recent high and low over a configurable lookback. A confirmed upward crossover triggers a long entry and a downward crossover triggers a short entry. The long stop is set at the 0.618 retracement and its target at the lookback high; short trades use the 0.382 retracement and lookback low. The example also exposes timeframe, EMA, lookback, and order-size settings, plus chart markers and alerts.

The document describes the mechanics and suggests filters such as volume, volatility, and higher-timeframe trend confirmation. It reports no measured performance results, and its claims of adaptability are not supported by comparative tests. The code includes percentage and trailing-stop inputs that do not appear to affect its exit orders, and fixed order quantity may not scale risk to account size. EMA whipsaws, wide Fibonacci stops, and parameter overfitting remain key concerns; forward and robustness testing are suggested.

Key ideas

• EMA crossovers provide the long and short entry signals.
• The strategy calculates Fibonacci retracements from recent highs and lows over a lookback window.
• Long and short exits use different retracement levels for stops and recent swing extremes for targets.
• The document identifies ranging-market whipsaws, wide stops, and overfitting as risks.
• The code lists percentage and trailing-stop inputs that are not used in its exit calculations.

Tags

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