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EMA23/EMA50 Crossover Strategy with Stops and Re-Entries

Article Strategy library · Author: ChaoZhang

Summary

This strategy uses EMA23 and EMA50 crossovers to establish long or short positions on a 30-minute chart. A cross above signals a long entry, while a cross below signals a short entry. It also exits positions when price crosses EMA50 under specified candle conditions, then allows re-entry when price returns across the average and the faster EMA confirms the direction.

The description specifies take-profit levels at 1.6 times the long entry price and 0.75 times the short entry price. Published backtest settings identify BTC/USDT futures on Binance over roughly one year, but provide no performance statistics, comparison, or trade-level evidence. The document itself flags EMA lag, false signals in sideways markets, trading costs, potentially premature stops, and the limitations of fixed profit targets. Its stated timeframe and code settings also differ: the strategy overview says 30 minutes, while the published backtest uses a one-day period with a one-hour base period.

Key ideas

  • EMA23 crossing above or below EMA50 supplies the primary long and short signals.
  • EMA50 price conditions define stop exits, and directional price recovery can trigger re-entry.
  • The stated take-profit levels are 1.6 times entry for longs and 0.75 times entry for shorts.
  • The document warns that lag, ranging markets, trading costs, and fixed exits may limit results.
  • Published backtest settings identify BTC/USDT Binance futures but do not report performance evidence.

Tags

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