Overview

This strategy uses the golden cross of 12-day EMA and 26-day EMA as the entry signal. To filter false breakouts, MACD is applied to judge market trend and RSI for overbought/oversold levels. Price breakout above resistance is also used as confirmation.

The strategy provides three optional stop loss methods: trailing stop loss, moving average stop and moving average crossover stop. Two take profit targets are set.

Strategy Logic

1. Entry Signal
   • Golden cross between 12-day EMA and 26-day EMA
   • MACD is positive and MACD line above Signal line
   • RSI within preset range
2. Entry Confirmation
   • Optional: Price breakout above dynamic resistance
3. Stop Loss
   • Trailing stop loss based on entry price and preset percentage
   • Close below 7-day SMA
   • Bearish cross between 12-day and 26-day EMA
4. Take Profit
   • Two staged take profit targets, exit partial position on first target and all on second

Advantages

1. MA system filters false signals, improves entry accuracy
2. Multiple stop loss options for different trader style
3. Dynamic trailing stop controls risks
4. Take profit in stages locks in some profit

Risks

1. More false signals when market oscillates
2. Trailing stop may be penetrated after strong run
3. Fail to exit timely on trend reversal

Solutions:

1. Use MACD to judge real trend
2. Adjust trailing percentage
3. Use other stop methods or combine stops

Enhancement

1. Optimize MA parameters for best performance
2. Test different stops and find best method
3. Adjust take profit levels for better reward
4. Add filters with other indicators
5. Customize for different products and timeframes

Conclusion

The strategy uses MA system for entry signal, with additional filters by MACD, RSI etc. Both stops and profit targets are optimized for matching different trader style. There is still large room for optimization on entry timing, stop method, take profit level etc. to further improve performance.