EMA Trend Entries with ADX and Trading-Session Filters
Summary
This trend-following system combines price crossings of a 50-period exponential moving average with the relative position of the 50- and 200-period averages. It also checks whether positive or negative directional movement supports the trade, and restricts entries to a configured trading session. The description discusses an ADX strength threshold, while the supplied source code uses the directional indicators for entry conditions but does not include that threshold in the buy or sell rules. The code sets fixed take-profit and stop-loss distances and plots the averages and directional indicators.
The document presents the filters and fixed exits as design features, not as evidence of profitability. It includes a backtest configuration for ETH/USDT futures, but reports no performance statistics. The stated limitations include lagging signals, whipsaws in ranging markets, fixed exits that do not adapt to volatility, parameter overfitting, and execution or technical failures. The written overview describes a 15-minute basis, while the published backtest uses a five-minute chart.
Key ideas
- Long entries require price to cross above the 50-period EMA while that average is above the 200-period EMA.
- Short entries use the opposite price crossing and EMA alignment, with directional movement supporting direction.
- A trading-session filter limits when signals may be acted on.
- Fixed take-profit and stop-loss distances do not adjust to changing volatility.
- The document reports a backtest setup but no results demonstrating profitability.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.