EMA Breakout Filter Long Only Trading Strategy
This long-only strategy uses an ATR channel to filter fake EMA breakouts for stable trend-following long trades. It focuses solely on long side trading.
Strategy Logic:
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Calculate n-period EMA as intermediate-term trend.
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Calculate n-period ATR for range channel bands.
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Go long when price breaks above channel top.
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Exit long when price breaks below channel bottom.
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ATR channel filters insignificant or short-term false breakouts.
Advantages:
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ATR channel improves reliability of long signals.
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Long only reduces complexity and risks.
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Simple optimization adapts easily across markets.
Risks:
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Unable to profit from short-side moves.
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Both EMA and ATR lag, causing poor entry timing.
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Hard to sustain signals in prolonged ranges.
In summary, this simple system can perform well in bull trends but requires caution on lagging indicators and ranging markets.
/*backtest
start: 2020-09-11 00:00:00
end: 2021-04-17 00:00:00
period: 7d
basePeriod: 1d
exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}]
*/
//@version=2
strategy("EMA Long Only Strategy", overlay=true, default_qty_type=strategy.percent_of_equity, default_qty_value=100)
len = input(21, minval=1, title="Length")- 1