TQQQ EMA Crossover Strategy with Percentage-Based Exits

Summary

This long-only strategy for TQQQ uses a fast exponential moving average with a default length of 20 and a slow one with a default length of 50. A bullish crossover triggers an entry. The strategy then sets a take-profit limit at 1.3 times the entry-signal bar’s close and a stop at 0.95 times that close, closing the trade when either exit is reached. The lengths and price multipliers are configurable.

The document describes the rules and displays chart plots for the averages and exit levels, but supplies no backtest results or performance analysis. Its settings specify no commission or slippage, and the exit prices are calculated from the signal bar’s close rather than the eventual fill price. Those assumptions may affect simulated outcomes, so the strategy description alone does not establish effectiveness or applicability beyond TQQQ.

Key ideas

• The strategy enters long when the fast EMA crosses above the slow EMA.
• The default EMA lengths are 20 for the fast average and 50 for the slow average.
• Take-profit and stop-loss levels are set using multipliers of the signal bar’s close.
• The document provides no performance evidence and specifies 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.