EMA, Supertrend, and Engulfing Confirmation with Pivot-Based Exits

Summary

This trend strategy combines EMA alignment, Supertrend direction, and an engulfing candle as an entry trigger. Longs require a bullish EMA ordering and price above the longest EMA; shorts require the inverse conditions. It limits signals to a London session in the description, and places stops at recent pivot levels with a stated 2:1 reward-to-risk target and trailing exit. Position sizing is described as risking 1% of equity.

The document includes source code and published ETH_USDT futures settings for a four-hour interval over a stated date range, but no performance results. There is a notable mismatch between the narrative and the source: the code does not implement the stated London-session filter or calculate position size from the described 1% risk rule. It also uses confirmed pivots, which become available with delay. The document identifies low signal frequency, lag, pivot-distance issues, and unreliable engulfing patterns in choppy conditions as limitations.

Key ideas

• Entries require EMA ordering, price relative to the longest EMA, Supertrend direction, and a matching engulfing candle.
• The narrative specifies London-session trading, pivot-based stops, a 2:1 target, and 1% equity risk.
• The supplied source does not implement the session filter or risk-based position sizing described in the text.
• The source includes four-hour ETH_USDT futures backtest settings but no reported performance results.
• Delayed pivots and whipsaws in ranging markets can affect entries and risk placement.

Tags

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