EMA–WMA Crossovers with Staged Profit Targets and a Shared Stop

Summary

This strategy enters long when a 10-period EMA crosses above a 20-period WMA and short when it crosses below, provided there is no open position and the signal falls within the configured date window. At entry, it sets two fixed profit targets and one stop; the first target closes half the position, leaving the rest to reach the second target or the stop. The source expresses target distances in ticks through instrument tick size, so the stated point and percentage outcomes depend on the instrument and position size.

The document presents staged exits as a way to secure partial gains while retaining exposure to a larger move. It warns that moving-average crossovers can whipsaw in ranging markets, and fixed distances may fit volatility poorly or fail during gaps. Although the narrative claims a capped loss and improved win rate, it provides no supporting performance evidence. The supplied test configuration covers only a short period, and the source's risk-per-trade input does not appear to affect its fixed position size.

Key ideas

• Long and short entries follow EMA and WMA crossovers when the strategy is flat.
• The first profit target closes half the position, while the remainder can pursue a farther target.
• A shared stop level applies to both portions of the position.
• Target and stop distances are fixed in ticks, so their cash and percentage effects vary by instrument and sizing.
• The document provides no evidence for its win-rate or drawdown claims and notes whipsaw, volatility, and gap risks.

Tags

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