This article explains in detail a trend following strategy using EMA crossover to generate trading signals. It aims to improve strategy robustness through optimizing moving average parameters.

I. Strategy Logic

The core rules are:

1. Set up fast EMA and slow EMA, with fast EMA for price change sensitivity and slow EMA for trend.

2. Go long on fast EMA crossover above slow EMA, and go short on crossover below.

3. Set EMA ratio where slow period ≥ 3 times fast period, to reduce false signals.

4. Option for long only mode to avoid counter-trend trades.

5. Customizable backtest period for parameter optimization.

By tuning EMA parameters, sensitivity and stability can be balanced to capitalize on trends.

II. Advantages of the Strategy

The biggest advantage is simplicity for ease of use, suitable for time-constrained traders.

Another advantage is the ability to reduce whipsaws through parameter optimization.

Lastly, long only mode avoids counter-trend trades and fits certain markets like stocks.

III. Potential Weaknesses

However, some issues exist:

Firstly, EMAs inherently have lagging issues, causing missed optimal entries.

Secondly, improper settings may over-filter causing missed trades.

Finally, stop loss and take profit mechanisms need improvements.

IV. Summary

In summary, this article has explained a trend following strategy based on EMA crossovers. It aims to improve robustness by tuning EMA parameters. With simple and clear rules, it is easy to implement but risks like EMA lag need prevention.