Single-Position Trend Trading with Dual EMA Crossovers

Summary

This trend following system uses a short and a long exponential moving average to determine entries and exits. A bullish crossover opens a long position when none is open, while a bearish crossover closes that position. The described setup uses a 10-minute strategy timeframe, 9- and 21-period EMA settings, and position sizing at 10% of equity. It also includes chart labels and alerts for the crossover events.

The document identifies common limitations: crossovers can whipsaw in sideways markets, and the lagging nature of moving averages can delay signals. It recommends considering filters or adaptive settings, but presents no tests of those changes. The provided backtest configuration specifies a different one-hour data period for SOL futures, and the source calculates on the chart timeframe rather than using its timeframe input. No trade results are reported, so the material explains a basic system rather than demonstrating its performance.

Key ideas

• A bullish crossover of the short EMA above the long EMA opens a long position.
• A bearish crossover closes an existing long position, and new entries are limited to flat periods.
• The described setup sizes trades at 10% of account equity and includes alert signals.
• Sideways markets can cause repeated false signals, while EMA lag can delay entries and exits.
• The stated strategy timeframe and the supplied backtest configuration do not align clearly.

Tags

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