Long-Only EMA Trend and ATR Support Pullback Strategy

Summary

This long-only method enters during an uptrend when price is above a 100-period EMA and pulls back near the lowest low of the prior 10 periods. It uses ATR to set a stop below support and staged profit targets, closing half at five ATRs and the remainder at ten ATRs. Position size is calculated from the distance to the stop so that the intended trade risk is limited to 3% of account equity.

The document provides parameter settings and a two-day ETH/USDT backtest configuration spanning several months, but no performance results. It identifies false support breaks, lagging trend confirmation, overtrading, and slippage as risks. Suggestions such as adding volume filters or multi-timeframe confirmation are proposed, not validated. The stated stop and target rules offer a clear framework, though real execution, changing market conditions, and the interaction between position sizing and order handling can affect realized risk.

Key ideas

• The method takes long positions only when price is above a 100-period EMA.
• A pullback toward the lowest low of the prior 10 periods defines the support area.
• ATR sets a stop and staged targets, with partial profit-taking at five ATRs and a later target at ten ATRs.
• Position size is based on stop distance to target a 3% account-equity risk per trade.
• The supplied backtest settings do not include performance results, and the method remains exposed to false breaks and slippage.

Tags

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