Triple EMA Pullback Breakouts with Risk-Based Exits

Summary

This strategy uses a fast, medium and slow EMA to define the broader trend, then looks for a pullback and a renewed move through the fast EMA. The example uses 25-, 100- and 200-period averages: bullish alignment requires the fast EMA above the medium EMA and the medium above the slow EMA; bearish alignment reverses that order. It tracks pullback extremes and enters when price crosses the fast EMA, subject to conditions that keep the pullback between the fast and slow averages. Exits use a stop and a profit target set by a risk-to-reward multiple, with position quantity tied to account equity and the distance to the medium EMA.

The document offers a strategy description and source, plus a short published test interval, but no performance results to support its claim of a high win rate or steady gains. The sample’s date-filter variable is always enabled in code without applying the configured date bounds, so the apparent filter does not operate as described. Fixed EMA settings, stop calibration, execution assumptions and pullback identification all require validation across markets and periods.

Key ideas

• EMA ordering defines bullish and bearish trend zones.
• Entries follow a pullback when price crosses the fast EMA in the trend direction.
• The example places stops and profit targets using risk distances and a risk-to-reward multiple.
• Position quantity is calculated from equity and the distance to the medium EMA.
• The source does not apply its configured backtest date range, and no performance results are reported.

Tags

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