This strategy uses two exponential moving averages (EMAs) to capture changes in price trends. When the short-term EMA crosses above the long-term EMA from below, a buy signal is generated; when the short-term EMA crosses below the long-term EMA from above, a sell signal is generated. The strategy also sets daily stop-loss and take-profit limits to control single-day losses and profits.
The EMA dual moving average crossover strategy is a simple, easy-to-understand trading strategy suitable for trending markets. By using the crossover of fast and slow moving averages, it can capture changes in price trends relatively well. At the same time, the daily stop-loss and take-profit settings can effectively control risks. However, the strategy may underperform in choppy markets or during trend reversals and needs to be optimized and improved by combining other technical indicators and analysis methods.
/*backtest start: 2023-06-01 00:00:00 end: 2024-06-06 00:00:00 period: 1d basePeriod: 1h exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}] */ // This Pine Script™ code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/ // © DD173838 //@version=5 strategy("Moving Average Strategy with Daily Limits", overlay=true) // Moving Average settings shortMaLength = input.int(9, title="Short MA Length") longMaLength = input.int(21, title="Long MA Length") // Calculate MAs shortMa = ta.ema(close, shortMaLength) longMa = ta.ema(close, longMaLength) // Plot MAs plot(shortMa, title="9 EMA", color=color.blue) plot(longMa, title="21 EMA", color=color.red) // Strategy conditions crossUp = ta.crossover(shortMa, longMa) crossDown = ta.crossunder(shortMa, longMa) // Debug plots to check cross conditions plotshape(series=crossUp, title="Cross Up", location=location.belowbar, color=color.green, style=shape.labelup, text="UP") plotshape(series=crossDown, title="Cross Down", location=location.abovebar, color=color.red, style=shape.labeldown, text="DOWN") // Entry at cross signals if (crossUp) strategy.entry("Long", strategy.long) if (crossDown) strategy.entry("Short", strategy.short) // Daily drawdown and profit limits var float startOfDayEquity = na if (na(startOfDayEquity) or ta.change(time('D')) != 0) startOfDayEquity := strategy.equity maxDailyLoss = 50000 * 0.0025 maxDailyProfit = 50000 * 0.02 currentDailyPL = strategy.equity - startOfDayEquity if (currentDailyPL <= -maxDailyLoss) strategy.close_all(comment="Max Daily Loss Reached") if (currentDailyPL >= maxDailyProfit) strategy.close_all(comment="Max Daily Profit Reached")template: strategy.tpl:40:21: executing "strategy.tpl" at <.api.GetStrategyListByName>: wrong number of args for GetStrategyListByName: want 7 got 6