EMA Ribbon Slope Acceleration for Trend Entries and Exits
Summary
This strategy uses five exponential moving averages with different lookback lengths to detect trends that are actively gaining strength. It calculates each EMA’s percentage change over a configurable number of bars, then requires all slopes to point in the same direction and become progressively stronger from the slowest average to the fastest. A threshold on the fastest-to-slowest slope spread, plus RSI and above-average volume filters, determines entries in either direction.
The strategy sizes positions from a chosen equity risk percentage and an ATR-based stop distance, and sets a take-profit level at a multiple of that risk. It also closes positions when the fan loses its slope ordering or compresses below an exit threshold. The document explains the logic and provides adjustable parameters, but reports no performance results or backtest evidence. Thresholds are described as instrument- and timeframe-dependent, and the volume filter may be less meaningful in thin markets.
Key ideas
- EMA slopes are measured as percentage changes over a configurable lookback.
- Entries require aligned slopes that strengthen from the slowest EMA to the fastest.
- RSI bounds and a volume threshold act as confirmation filters.
- ATR-based stops determine position size, while a fixed risk multiple sets the target.
- Fan compression or loss of slope ordering can close a position before an EMA crossover.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.