Multi-EMA Golden Cross Entries with Tiered Profit Targets

Summary

This long-only trend strategy uses the ordering of the 25-, 50-, and 100-period EMAs as an upward-trend filter. Once the shorter averages are above the longer ones, it enters when price crosses above the 25-period EMA, dividing the position into two equal parts. A stop is based on the lowest low over the preceding 20 bars, minus a fixed buffer. The two portions have separate profit targets set at 1.0 and 1.5 times the entry-to-stop distance, while a close below the 100-period EMA can trigger an exit.

The staged exits aim to realize some gains while leaving the second portion open for a larger move. The document notes risks from lagging averages, sideways-market false breaks, a fixed buffer that may not suit every instrument, and rigid position allocation. Published settings describe a BTC/USDT futures test on a one-hour period, but no performance results are reported. The source uses the close for its EMA-cross exit checks, and its stop and target rules should be reviewed against the intended order behavior before deployment.

Key ideas

• The trend filter requires the 25-, 50-, and 100-period EMAs to be ordered upward.
• A close crossing above the 25-period EMA triggers two equal-sized long entries.
• The stop uses a recent low and fixed buffer, with separate targets based on the entry-to-stop distance.
• A close below the 100-period EMA can close positions as a trend-protection rule.
• The strategy may struggle in sideways markets, and the published backtest settings include no performance results.

Tags

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