Triple EMA Trend Entries with ATR-Based Stops and Targets
Summary
This strategy combines three exponential moving averages to identify trend entries and exits. It enters long when the middle EMA crosses above the slow EMA and closes when the fast EMA crosses below the middle EMA. The description frames the approach as trend following, with moving-average crossovers providing directional signals.
ATR sets the protective stop and profit target from the entry price, using separate multipliers. The listed defaults include EMA lengths of 9, 21, and 55, an ATR length of 14, a target multiplier of 3, and a stop multiplier of 2. Published backtest settings specify BTC/USDT futures over a short period, but no performance results are supplied. The source code only implements long entries, despite the prose also describing short targets. It also defines RSI and a 200-period trend average without using them in the entry rules, and the date-range flag is always true. The document warns about lag, whipsaws in sideways markets, and sensitivity to parameter choices; the claimed stability and risk balance are not supported by reported test results.
Key ideas
- A middle EMA crossing above a slow EMA triggers a long entry.
- A fast EMA crossing below the middle EMA closes the long position.
- ATR-based stop and target levels are set relative to the entry price.
- The supplied code implements long trades, although the explanation also discusses short trades.
- Lag, sideways-market whipsaws, and parameter sensitivity are stated limitations.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.