Multi-Period EMA Crossover Strategy with Configurable Pairs

Summary

This strategy uses a configurable set of eight exponential moving averages, spanning short to long periods, and trades the crossovers of adjacent enabled averages. A cross of a shorter EMA above a longer one opens a long position; a cross below closes it. The design allows traders to select which pairs participate, with position quantity divided across enabled averages. The document provides the rules and describes the approach as a simple way to follow trends across different horizons, but gives no measured performance results. It cautions that moving average crosses can whipsaw in ranging markets, incur extra trading and slippage, and produce false signals. Suggested improvements include parameter checks such as walk-forward analysis, volume or volatility filters, and adapting position size or exits; these are proposals rather than tested findings.

Key ideas

• The strategy trades crossovers between adjacent enabled EMAs.
• A shorter EMA crossing above a longer one opens a long position, while a downward cross closes it.
• Eight EMA periods are available, and each can be enabled independently.
• The document warns that whipsaws and slippage can undermine performance and reports no backtest results.

Tags

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