Trend Pullback Re-Entry with EMA Regimes and ATR Risk Controls

Summary

This strategy seeks to re-enter an established trend after a countertrend pullback. It defines the trend using the relationship between fast and slow EMAs and the slow EMA’s slope. A short-period RSI detects a pullback, and a price close beyond the previous bar’s high or low provides the entry trigger within a limited number of bars. Long and short trades can be enabled separately.

Risk controls size a position according to a chosen fraction of equity and the distance to an initial stop placed beyond the pullback extreme, subject to a maximum leverage cap. After entry, an ATR-based trailing stop is designed to move with the trade rather than against it. The source also specifies commissions, slippage, and no pyramiding. The supplied document ends partway through the strategy source and includes no backtest configuration or performance results, so the implementation and effectiveness of later exit logic cannot be assessed here. The numerous configurable thresholds still require testing across instruments and market conditions.

Key ideas

• The trend regime uses fast and slow EMAs plus the slow EMA’s slope.
• A short-period RSI identifies a countertrend pullback within the established trend.
• Entry requires a close beyond the previous bar’s high or low within a limited trigger window.
• Position size is based on equity risk and initial stop distance, with leverage capped.
• An ATR-based trailing stop is designed to move only in the trade’s favor.

Tags

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