EMA Ride Strategy with Trend, Pullback, and Strength Filters

Summary

This long-only strategy seeks pullbacks within an established rising trend. It uses a stack of short, medium, and longer exponential moving averages, requires a sustained run of closes above the medium average, and checks that a minimum share of recent closes remained above the short average. It also counts recent tests of the medium average followed by closes above the short average, then looks for price near but above the short average while that average is rising.

Entry is further gated by minimum ATR as a share of price and distance above the lowest low over roughly a trading year. The strategy offers exits on a close below the medium average, below the short average, or either. Its source sets commission and slippage assumptions, but the document provides no backtest results or asset and timeframe evaluation. Several inputs and calculations, including volume's moving average and a long-ride condition, do not appear to drive the final entry signal; profitability and robustness therefore remain unestablished.

Key ideas

• The strategy enters long on a shallow pullback when the moving averages are stacked upward and the short average is rising.
• Trend persistence is measured with closes above the medium average and recent tests of that average that recover above the short average.
• ATR and distance from the rolling 52-week low act as additional entry filters.
• Exit behavior can follow the medium average, the short average, or either one.
• The document gives no performance results, and some calculated conditions do not affect the final signal.

Tags

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