TQQQ EMA Crossover Strategy with ADX Filter and Trailing Stop

Summary

This long-only TQQQ strategy enters when a 20-period EMA crosses above a 50-period EMA, provided the 14-period ADX is at least 20 and no trade is open. Position quantity is calculated from current strategy equity multiplied by a configurable leverage factor, then rounded down to whole units, with a minimum quantity of one.

For exits, the script places a limit target at 1.3 times the entry price and a stop initially at 0.95 times entry. If the close reaches 10% profit, the stop moves to breakeven; at 20% profit, it moves to 10% above entry, and it never moves down. These settings and thresholds are configurable or explicit in the source. The document provides strategy code but no backtest results, and its zero commission and slippage assumptions may make simulated performance less representative of live trading.

Key ideas

• A fast EMA crossing above a slow EMA creates a potential long entry.
• The entry also requires ADX to meet or exceed 20 and the strategy to be flat.
• Position size scales with equity and a configurable leverage multiplier.
• The exit combines a fixed profit target with a stop that ratchets upward as gains grow.
• The source gives no performance evidence and assumes zero commission and slippage.

Tags

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