This strategy uses fast and slow moving averages to identify and follow trends. It generates buy signals when the fast line crosses over the slow line and sell signals when the fast line crosses below the slow line. This strategy is suitable for tracking medium- and long-term trends and filtering out market noise effectively.
This strategy utilizes two Exponential Moving Averages (EMAs) with different periods as the basis for trade decisions. The fast EMA has a period set to 30 to capture short-term price fluctuations. The slow EMA has a period set to 100 to gauge the direction of the mid- to long-term trend.
When the fast EMA crosses the slow EMA from below, it indicates the market is entering an upward trend and generates a buy signal. When the fast EMA crosses below the slow EMA from above, it flags the start of a downward trend and produces a sell signal.
The advantages of this strategy include:
Some risks also exist:
Some optimization directions:
This strategy builds a trading system based on double EMA crossovers, using fast and slow EMA relationships to determine market trend. Signal generation is simple and clear. It filters some noise and goes along with trends, suitable for medium- to long-term trend trading. There is room for improving universality and efficiency via multi-indicator optimization and risk control.
/*backtest start: 2023-01-21 00:00:00 end: 2024-01-21 00:00:00 period: 1d basePeriod: 1h exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}] */ //@version=2 strategy("EMA Strategy v2", shorttitle = "EMA Strategy v2", overlay=true, pyramiding = 3,default_qty_type = strategy.percent_of_equity, default_qty_value = 10) // === Inputs === // short ma maFastSource = input(defval = close, title = "Fast MA Source") maFastLength = input(defval = 30, title = "Fast MA Period", minval = 1) // long ma maSlowSource = input(defval = close, title = "Slow MA Source") maSlowLength = input(defval = 100, title = "Slow MA Period", minval = 1) // invert trade direction tradeInvert = input(defval = false, title = "Invert Trade Direction?") // risk management useStop = input(defval = true, title = "Use Initial Stop Loss?") slPoints = input(defval = 0, title = "Initial Stop Loss Points", minval = 1) useTS = input(defval = true, title = "Use Trailing Stop?") tslPoints = input(defval = 0, title = "Trail Points", minval = 1) useTSO = input(defval = false, title = "Use Offset For Trailing Stop?") tslOffset = input(defval = 0, title = "Trail Offset Points", minval = 1) // === Vars and Series === fastMA = ema(maFastSource, maFastLength) slowMA = ema(maSlowSource, maSlowLength) plot(fastMA, color=blue) plot(slowMA, color=purple) goLong() => crossover(fastMA, slowMA) killLong() => crossunder(fastMA, slowMA) strategy.entry("Buy", strategy.long, when = goLong()) strategy.close("Buy", when = killLong()) // Shorting if using goShort() => crossunder (fastMA, slowMA) killShort() => crossover(fastMA, slowMA) //strategy.entry("Sell", strategy.short, when = goShort()) //strategy.close("Sell", when = killShort()) if (useStop) strategy.exit("XLS", from_entry ="Buy", stop = strategy.position_avg_price / 1.08 ) strategy.exit("XSS", from_entry ="Sell", stop = strategy.position_avg_price * 1.58)