EMA Trend Pullbacks with WaveTrend Crossover Entries

Summary

This strategy combines a 200-period EMA as a broad direction filter, a 50-period EMA to define a pullback zone, and a WaveTrend-style oscillator crossover as the entry trigger. It goes long when price is above the 200 EMA but below the 50 EMA and the fast oscillator crosses above its signal line. It goes short when price is below the 200 EMA but above the 50 EMA and the oscillator crosses below its signal line. The script sets position size to 10% of equity and includes commission and slippage assumptions.

The material explains the intended logic but provides no backtest period, performance statistics, or evidence that the entries have an edge. The visible script contains entry rules but no explicit stop, profit target, or other exit logic, leaving trade management unspecified. The pullback conditions can identify price between the two averages, but the document does not define additional safeguards for ranging markets or describe how the strategy handles reversals and costs beyond its stated assumptions. It should therefore be read as an entry concept, not a validated complete trading system.

Key ideas

• The 200-period EMA sets the broad trend direction, while the 50-period EMA helps locate pullbacks.
• A WaveTrend crossover triggers entries when price is between the two EMAs in the direction of the broader trend.
• The script specifies 10% of equity per position, commission of 0.05%, and one tick of slippage.
• The published rules do not include explicit stops or profit-taking exits, and no backtest results are shown.

Tags

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