Short-Term Trend Breakouts with EMA, VWAP, and ADX Filters

Summary

This short-term strategy combines a persistent trend filter with pullback entries and VWAP confirmation. It defines trend using price staying above or below a 60-period EMA for 30 bars, and requires the shorter EMA structure to align before entering. A signal follows a retracement toward the 20- and 50-period EMAs, with price relative to VWAP bands helping confirm direction. The overview also describes ADX as a trend filter, although the supplied source code does not calculate or use ADX.

Entries are limited to a configured session. Stops are placed at the 50-period EMA, while profit targets are based on the stop distance, with a configurable risk-to-reward setting and optional move to breakeven. The source closes positions near the end of the trading day. The document gives logic and configuration examples but no performance results; its brief published test covers a narrow period, and parameter, session, and instrument choices may materially affect outcomes. Failed breakouts and frequent losses are acknowledged risks.

Key ideas

• The source requires price to remain on one side of the 60-period EMA for 30 bars to establish trend direction.
• Shorter EMA alignment and a pullback toward the 20- and 50-period averages contribute to entry signals.
• VWAP bands on the configured symbol provide an additional directional condition for entries.
• Stops use the 50-period EMA, and targets scale with the distance from entry to stop.
• The description mentions ADX, but the provided source code does not implement it.

Tags

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