EMA-Filtered Diamond and Triangle Patterns with Trailing Exits

Summary

This strategy combines reversal entries labeled as diamond patterns with trend-continuation entries labeled as triangles. It uses a 10- and 20-period EMA cloud to distinguish price location and an EMA-separation threshold to filter low-separation conditions. The document describes different quantities for the two setup types, a restricted intraday trading window, and trailing exits that begin after a delay and use prior closes. It also describes exits triggered by opposing price structures.

The text claims improvements in win rate, drawdown, holding time, and avoided range-market losses, but the provided source excerpt does not include enough of the entry and calculation logic to verify those figures. The listed backtest configuration names ETH-USDT futures over a stated period; no underlying results or methodology are supplied. Pattern interpretation, gaps, news-driven moves, chop, and position sizing are material limitations. The document recommends controlling trade risk and pausing after a losing streak, but its specific quantities and thresholds may depend on the market and contract.

Key ideas

• The method combines diamond-style reversal setups with triangle-style continuation setups around a dual-EMA cloud.
• An EMA-separation filter is intended to suppress entries during low-separation conditions.
• Trailing stops activate after a delay, and opposing price structures can also close positions.
• The document reports performance claims without enough source detail or supporting results to verify them.

Tags

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