Custom Dual EMA Crossover Strategy with Configurable Logic

28 thg 12, 2024

This strategy is designed to assist traders in identifying and capitalizing on bullish market trends through a systematic and data-driven approach. It incorporates detailed trend analysis, volatility filtering, and percentage-based thresholds to provide actionable insights and high-confidence trade setups. It leverages the Exponential Moving Average and combines it with custom logic to detect volatility, maximum allowed price movements over last bars and trend confirmation.

Key Features:

- Buy orders follow several conditions, including but not limited to:

a. EMA Crossover: specifically designed to capture immediate market shifts rather than medium- or long-term trends, ensuring responsiveness to rapidly changing conditions but requiring additional confirmations to avoid false signals (see below).

b. Thresholds in Price Changes: Ensures recent price fluctuations remain within specific thresholds, allowing trades to be entered at optimal times and avoiding delayed or unsustainable short-term bullish trends.

c. Adequate Market Volatility: Requires sufficient market activity to avoid false signals stemming from low volatility conditions.

d. Bullish Medium-Term Trend: Validates a bullish medium-term trend using an EMA crossover to avoid trading during bearish market conditions and minimize risk.

- Leverages Take profit and Stop loss levels
- Implements an optional mechanism to automatically close trades after a predefined number of bars, supporting disciplined trade management.


The script does not rely on any public scripts or indicators. Apart the EMA, all the underlying logic, including the volatility thresholds and filtering mechanisms, has been custom developed to ensure originality and precision. The strategy's conditions are all configurable by the user in the TradingView pop-up, allowing it to adapt to different assets and timeframes. For example, users can set the EMA lengths to align with long-term trends for cryptocurrencies or adjust volatility thresholds to account for the specific price movement behavior of stocks or forex pairs.

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Recommendations:

- Identify a crypto asset with potential
- Before live trading, rigorously backtest your strategy on the chosen asset and interval over a period of at least one year*, analyzing results, refining parameters' value and eventually changing timeframe and / or asset.
- Refine your approach until you achieve consistent profitability with a high win rate. Balance the two — a high win rate is great, but only if your profits outweigh your losses in the long term. 
- Once successful, remain disciplined and adhere to the parameters that yield the best results. Set up TradingView alerts to trigger real-time actions via your preferred trading bot. Alerts can be set up on the Indicator, which mirrors the strategy's logic and enables users to execute real-time actions effectively. I will provide you access to the Indicator, as well as the Strategy.

* Alternatively, you can apply the strategy to a shorter period for tactical use. While this approach may increase short-term opportunities (e.g. strong bullish short term movements), it also comes with heightened risks.



Use Cases:

- Suitable for traders focusing on bullish or range-bound markets.
- Ideal for short to medium-term trading horizons.



Access and Configuration Support:

This is an invite-only script. For access, please reach out directly for subscription details. I also provide guidance on configuring the strategy with real-world examples to optimize its use for various assets, intervals and timeframes.

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Disclaimer:
This script is a tool to support trading decisions and does not guarantee profitability. Past performance does not indicate future results. Trading carries inherent risks; always trade responsibly and manage risk accordingly.