Multi-Timeframe EMA Scalping with Session and ATR-Based Risk Rules

Summary

This script describes a short-term scalping approach that aligns a lower-timeframe EMA crossover with a higher-timeframe trend filter. Long signals occur when price crosses above the lower-timeframe EMA while remaining above the prior higher-timeframe EMA value; short signals use the inverse conditions. Entries are limited to the London or New York session windows, and the strategy only opens a position when flat.

For risk management, the stop is placed beyond the signal candle’s low or high by an ATR-based distance, and the take-profit distance is set using a configurable risk-reward ratio. The script sets position size as a percentage of equity and specifies initial capital and commission assumptions. It also tracks and plots trade levels and calculates pip-style distances for display. The supplied excerpt contains no backtest report or results, and it does not identify a specific market instrument. Its performance therefore cannot be assessed from this document; the trading rules and risk settings are a proposed strategy configuration, not evidence of an edge.

Key ideas

• The strategy combines a lower-timeframe EMA crossover with higher-timeframe trend alignment.
• Entries are restricted to configured London and New York sessions.
• Stops use an ATR distance beyond the signal candle, with targets based on a risk-reward multiple.
• The script permits only one open position at a time and sizes trades as a percentage of equity.
• The excerpt provides no results that establish the strategy's performance.

Tags

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