EMA, Hull, and ADX Trend Entries with Streak and ATR Filters

Summary

This strategy combines a 20-period EMA for directional bias, a 21-period Hull moving average for trend direction, and a 14-period ADX filter that can be switched off. It enters only when these conditions align, the price is within two ATRs of the EMA, and the prior bars do not show a run of three or more candles against taking that position. Exits use a fixed 40-point profit target and 20-point stop, giving a stated 2:1 reward-to-risk ratio.

The document reports backtest claims including higher win rates above the ADX threshold and a drawdown reduction from the streak filter, but gives no detailed performance table or methodology beyond a short five-minute SOL futures test period. It warns that ADX can lag, Hull can whipsaw in ranges, and fixed point exits may behave differently across instruments and volatility regimes. It recommends limiting per-trade risk and reassessing after consecutive losses; its reported results should be treated as historical claims rather than evidence of future performance.

Key ideas

• EMA direction, Hull slope, and ADX strength jointly gate entries.
• A streak filter blocks entries after three or more prior same-direction candles.
• The price must remain within two ATRs of the EMA for a new entry.
• The fixed exits use a 40-point target and a 20-point stop.
• The strategy is vulnerable to lag and whipsaws, especially in choppy markets.

Tags

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