EMA Stack Bias with Fast-Cross Entries and Exits

Summary

This strategy uses up to six configurable exponential moving averages to define directional bias, then uses the fastest pair’s crossover for trade timing. Enabled averages must be strictly ordered from shorter to longer to establish a bullish or bearish stack. When the bias becomes active while the fast pair is already aligned, the strategy can also enter, allowing a re-entry without waiting for another crossover.

A long position closes when the fast EMA crosses below the second EMA; a short closes on the opposite cross. The script permits each average to be toggled separately for display and for bias calculations, and includes baseline commission and slippage assumptions. The document explains the rules and configuration options but gives no backtest results or evidence of profitability. Its default cost settings are placeholders that should reflect the instrument and timeframe, and performance will depend on market, costs, and position sizing.

Key ideas

• The enabled EMA values must form a strict ordered stack to establish bullish or bearish bias.
• Entries use the first and second EMA crossover, subject to the wider stack filter.
• A newly activated bias can trigger entry if the fast pair is already aligned.
• Positions exit on the reverse crossover of the fast EMA pair.
• The configurable strategy is a testing baseline, and the document reports no performance evidence.

Tags

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