EMA Pullback Shorts with ATR Stops in Scheduled ES Sessions

Summary

This ES futures strategy looks for short entries when three exponential moving averages are stacked bearishly, price pulls back to the fastest EMA, and the signal candle closes below its open. Entries are restricted to two specified US trading windows. The code calculates a stop and target from ATR, using separate configurable multiples, and plots the moving averages and sell labels. The accompanying explanation presents the setup as a trend pause followed by continuation and describes bullish rules as a mirror image, though the supplied code implements only short trades.

The document recommends avoiding sideways conditions where the averages are tangled and candles are small. It gives an illustrative trade and asserts an approximate win rate and reward-to-risk relationship, but offers no backtest report or supporting sample details. The written example’s stated ratio differs from the code’s configured ATR multiples. Results therefore cannot be inferred from the description; contract sizing, fills, costs, and session conventions also affect real outcomes.

Key ideas

• A bearish EMA ordering defines the short-term trend condition for the setup.
• A bar whose high reaches the fastest EMA and then closes down supplies the pullback and momentum conditions.
• Short entries are limited to the configured morning and afternoon sessions.
• The code sets stop and target distances using ATR multiples, while implementing no long-side entry logic.
• The narrative discourages trading in choppy conditions but gives no verifiable backtest evidence.

Tags

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