Multi-EMA Trend Following with Staged Entries and Exits

Summary

This strategy uses five EMAs, with periods of 12, 144, 169, 576, and 676, to define aligned bullish or bearish trends. It looks for price interaction with EMA144 and a close on the appropriate side of EMA169 to trigger entries. Additional positions can be added, up to five, subject to signal and spacing rules.

Each position uses a stop based on the preceding 12-bar price extreme and a symmetric profit target derived from the entry price and stop distance. At the target, half the position is closed; the remainder stays open until stopped. A crossover of EMA12 and EMA144 closes all positions. The document describes the rules and risks, including lagging signals, fixed EMA periods, capital concentration from additions, and dependence on sufficient history. It gives no performance statistics or backtest results, so the strategy’s effectiveness is not established.

Key ideas

• Aligned EMA ordering defines the long and short trend regimes.
• Entries combine price crossing EMA144 with a close beyond EMA169.
• The system allows up to five staged positions, with a spacing rule for later additions.
• Stops use recent price extremes, while profit targets are set symmetrically from entry and stop distance.
• An EMA12 and EMA144 crossover closes all positions.

Tags

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