EMA Trend and RSI Entries with ATR Stops and Targets

Summary

This example presents a directional strategy that uses a fast and slow exponential moving average to define the prevailing trend. It enters long when RSI crosses above a lower threshold while price is above the fast average, and enters short when RSI crosses below an upper threshold while price is below that average. The script places stop loss and take profit orders at distances based on ATR, with a wider target distance than stop distance. Position size is set as a percentage of equity, and the example includes a commission assumption.

The document provides implementation logic, but no backtest results, asset selection, chart timeframe, or performance evidence. Its page description characterizes it as a sample for testing, so its rules should be treated as an illustrative template rather than a demonstrated profitable system. The moving averages, RSI thresholds, ATR multipliers, sizing, and costs may behave differently across markets and regimes; validation would need realistic execution assumptions and out-of-sample evaluation.

Key ideas

• The fast and slow EMAs determine whether the strategy considers the market bullish or bearish.
• Long and short entries combine trend direction, an RSI threshold crossing, and price relative to the fast EMA.
• ATR multiples define stop and target distances, with the target set farther away than the stop.
• The script specifies percentage-of-equity sizing and a commission assumption but provides no performance evidence.

Tags

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