EMA Trend and Prior-Bar Breakouts with Fixed Targets and Stops

Summary

This strategy combines a moving-average trend filter with a one-bar price breakout. It signals long when the faster EMA is above the slower EMA and the close exceeds the prior bar's high; it signals short when the averages and close show the opposite pattern. A cooldown measured in bars limits how soon another entry can be triggered after a signal.

Each position is assigned a fixed price-distance profit target and stop from its average entry price. The script includes chart markers for entries and for transitions back to flat. The post offers no instrument context, timeframe guidance, backtest results, or evidence that the chosen distances are appropriate. Because the target and stop are absolute price moves, their risk and reward meaning will vary with the traded asset and its price scale; transaction costs and execution effects are also not assessed.

Key ideas

• The faster-versus-slower EMA relationship defines the direction in which breakouts are considered.
• A close beyond the previous bar's high or low triggers a directional signal.
• A bar-based cooldown spaces signals apart.
• Fixed price-distance targets and stops define exits around the average entry price.
• The document gives no performance evidence or market-specific calibration for its exit distances.

Tags

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