EMA Trend and Higher-Timeframe Scoring Strategy with ATR Exits
Summary
This strategy combines a three-EMA trend state, a higher-timeframe close relative to its 50-period EMA, and a candle-impulse breakout condition. It assigns weighted scores to long and short setups, then applies mode-specific score thresholds. Additional filters measure directional efficiency to flag choppy conditions and require price to be displaced from a 34-period EMA. ATR sets stop distances and a fixed reward-to-risk target; a memory variable can permit re-entry in the prior losing direction when higher-timeframe bias remains aligned.
The accompanying description proposes broader features such as liquidity sweeps, structure-based exits, and split-position hybrid behavior, but these are not implemented in the supplied script. There are no reported backtest statistics or evidence for the stated expected improvements. The code’s LONG mode can suppress its ATR exit while its trend-valid condition holds, and re-entry conditions bypass several original entry filters. These behaviors, along with order handling and data assumptions, need scrutiny before interpreting the strategy’s results.
Key ideas
- The strategy scores EMA trend, relative value, impulse breakouts, and higher-timeframe bias.
- ATR determines stop distance, while a reward-to-risk multiple sets the target.
- An efficiency ratio filters choppy conditions in FAST and HYBRID modes.
- Loss memory can allow a same-direction re-entry when higher-timeframe bias persists.
- Several features described in the accompanying text are absent from the code, and no performance evidence is supplied.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.