EMA–WMA Crossover Entries with Point-Based Stops and Targets
Summary
The document describes a crossover example that enters long when the exponential moving average crosses above the weighted moving average and short on the reverse cross, provided there is no open position. It sets stop and target prices from the entry price using point inputs scaled by the instrument's minimum tick. The published example uses 10- and 20-period averages and 20-point inputs for both target and stop, with a BTC-USDT futures test configuration over a short date range; no performance results are reported.
The article presents adjustable stop and target distances as a way to tailor trade risk, and discusses trailing stops as a possible feature. However, the published script's calculated trailing-stop values are not used in its exit orders: exits use the fixed stop and limit levels. Its point conversion also depends on tick size, so the meaning of a point is instrument-specific. The source itself frames the crossover as an illustration of point-based exits, not as a validated trading system. The document recommends testing parameter combinations and notes that crossovers can give poor signals during sharp or changing markets.
Key ideas
- Long and short signals come from EMA–WMA crossovers when the strategy is flat.
- Stop and target prices are calculated from entry using point inputs multiplied by tick size.
- The example sets equal point inputs for the stop and target, but reports no trading results.
- Although trailing values are calculated, the published exit orders use fixed stop and limit prices.
- Crossover lag and instrument-specific tick conventions limit how directly the example transfers across markets.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.