EMA High-Low Channel Strategy with Percentage Exits

Summary

This strategy calculates separate exponential moving averages of highs and lows, then uses the channel they form to set directional signals. A close above the high-based EMA triggers a long entry, while a close below the low-based EMA triggers a short entry. Opposite signals close the current position and open the other direction, subject to a configurable date window. Each position also receives a percentage take-profit and stop-loss based on its average entry price.

The script provides adjustable EMA length, exit percentages, and backtest dates, and begins a monthly and yearly profit-and-loss table. The excerpt ends partway through that table's initialization, so its display logic and any reported performance are unavailable. No results or market-specific evidence are included. The date filter closes positions outside the selected range, and the provided strategy settings specify no commission; practical evaluation would need realistic fees, slippage, and testing across instruments and timeframes.

Key ideas

• The strategy uses separate EMAs of bar highs and lows to define a price channel.
• A close above the high EMA triggers a long, and a close below the low EMA triggers a short.
• Opposite-direction signals reverse the position within the selected backtest window.
• Percentage-based profit targets and stop losses are calculated from the average entry price.
• The excerpt provides no performance results and specifies zero commission in its strategy settings.

Tags

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