Multi-EMA Pullback Entries with ATR Stops and Targets

Summary

This strategy combines a long-term EMA alignment filter with pullback entries and volatility-based exits. It identifies an uptrend when the 20-, 50-, 100-, and 200-period EMAs are ordered from shortest to longest, then enters long when price is between the 21-period and 50-period EMAs. The stop and profit target are set from the entry price using multiples of the 14-period ATR, and the rules allow only one open position at a time.

The document describes a backtest configuration for BTC/USDT futures on daily bars, covering a multi-year period, but it provides no performance statistics or trade results. The source rules also appear to use the 21-period EMA as an upper boundary for the pullback, while the prose describes price near that average; the actual condition is a range between the 21-period and 50-period EMAs. This is a long-only system, so the stated trend reversal risks and sideways-market whipsaws matter. Slippage, parameter sensitivity, and execution assumptions could affect live results.

Key ideas

• The strategy treats a bullish ordering of four EMAs as confirmation of an uptrend.
• It seeks long entries when price lies between the 21-period and 50-period EMAs.
• The initial stop and profit target are placed at ATR-based distances from entry.
• Only one position may be open at a time, and the described rules do not define short entries.
• The published backtest settings do not include performance results.

Tags

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