Pre-Market EMA and SMI Momentum Breakout Strategy

Summary

This intraday approach uses a 50-period EMA as a price filter and the Stochastic Momentum Index (SMI) for entry timing. During the morning session, it goes long when SMI crosses above its signal line while below zero, provided price is above the EMA. A close below the EMA triggers a position close, while a fixed percentage profit target is specified. The description frames the setup as a pre-market breakout strategy, though the code’s session filters focus on regular market and morning hours.

The document lists parameters and a BTC/USDT futures backtest configuration but gives no performance results. The configuration uses multi-day bars, which does not demonstrate the intraday timing described in the strategy. It only specifies long entries in the code, and its claimed short-term behavior is therefore not evidenced by the supplied implementation or results. The stated risks include false breakouts, gaps, and stops that may be too tight; position sizing and disciplined exits are recommended.

Key ideas

• The EMA acts as a directional filter for long entries and exits.
• An SMI crossover below zero triggers a candidate long during the morning session.
• The method specifies a fixed profit target and closes longs below the EMA.
• The published multi-day backtest settings do not validate the described intraday behavior.

Tags

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