FCPO Intraday Strategy Combining EMA, KDJ, MACD, and Candle Filters

Summary

The strategy combines trend, momentum, extreme readings, candle direction, and a price-direction filter to trade FCPO on five-minute bars. Long entries require price above an exponential moving average, an oversold KDJ reading, bullish MACD alignment, bullish Heikin Ashi and raw candles, and an upward Tower-line condition. Shorts use the corresponding bearish conditions, including an overbought KDJ reading. Tower-line confirmation can be configured to require a color flip or accept a continuing direction.

The script also specifies fixed stop and target distances, a maximum holding period, a cutoff for new trades, and a daily forced close to avoid overnight positions. It warns that backtests should use ordinary candles because Heikin Ashi prices can distort simulated fills, and gives contract point-value context for translating monetary risk into points. The excerpt describes parameters and rules, but ends before the complete signal and exit logic and supplies no strategy report or performance evidence. Results would depend on instrument settings, commissions, slippage, session assumptions, and out-of-sample validation.

Key ideas

• The setup filters trades through EMA direction, MACD momentum, KDJ extremes, candle confirmation, and Tower-line direction.
• Long signals pair an oversold reading with bullish trend and confirmation conditions; shorts reverse the direction.
• Configurable exits include fixed stops and targets, a holding limit, and an end-of-day close.
• The author warns that Heikin Ashi chart fills can distort backtest results and recommends ordinary candles.

Tags

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