EMA Crossovers with Swing-Based Stops and Fixed Profit Targets

Summary

This document describes an automated trend-following system that enters long when price crosses above an EMA and short when it crosses below. It uses a configurable EMA, with a stated default of 50 periods, and sizes trades from a chosen share of account equity. Stops are placed beyond recent swing lows or highs with a point buffer, while profit targets use a fixed distance from entry. A lookback check is described as a way to screen crossover signals, alongside automated alerts and execution.

The document provides implementation details and BTC/USDT futures backtest settings spanning roughly a year, but it reports no performance results. Its source code does not clearly implement the described lookback validation, and its entry calls use stop and limit parameters in ways that do not straightforwardly match the stated market-entry and exit logic. It also notes that choppy markets can produce repeated false signals, and that slippage, fixed targets, and changing volatility may affect live outcomes. Suggested extensions include trend-strength and volume filters, volatility-based targets, and broader testing.

Key ideas

• Price crossing above or below an EMA triggers the stated long or short signal.
• Position size is intended to relate trade risk to account equity and stop distance.
• Stops use recent swing levels with a configurable buffer, while targets use a fixed entry distance.
• The document proposes filters and volatility adaptation to address false signals and changing conditions.
• Backtest settings are supplied, but no performance statistics are reported.

Tags

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