Long-Only Trend Entries Using the 50 and 200 EMA

Summary

This simple long-only strategy combines a 50-period EMA for entry timing with a 200-period EMA as a broad trend filter. It opens a position when price crosses above the shorter average while remaining above the longer one, and closes when price crosses below the shorter average. The document also describes an automation setup in which TradingView alerts pass signals through a Python webhook server to Interactive Brokers.

The script specifies full account equity as the position size and does not include short entries. The accompanying description says the method is intended for stocks and mentions major ETFs, but it provides no backtest results, transaction-cost analysis, or evidence that the rules are profitable. The exit depends on the shorter average and may lag a reversal; the described rule set also leaves sizing, stops, and execution safeguards unspecified. Treat the automation outline as implementation context rather than proof of strategy performance.

Key ideas

• A 200-period EMA filters entries to periods when price is above the longer trend reference.
• A cross above the 50-period EMA triggers a long entry when the trend filter is satisfied.
• A cross below the 50-period EMA closes the long position.
• The strategy is long-only and uses full equity as the stated position size.
• The document describes alert-based execution but supplies no performance evidence.

Tags

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