Best EMA Cross Strategy with TP/SL

Best EMA Cross Strategy with TP/SL

🧠 Core Concept:
This strategy combines three exponential moving averages (EMAs) to detect trend shifts and places trades with automatic take profit (TP) and stop loss (SL) levels based on percentage risk management.

📊 Indicators Used:
EMA 20 (Green): Short-term trend (for context only)

EMA 50 (Red): Medium-term trend

EMA 200 (Yellow): Long-term trend baseline

✅ Entry Logic:
🔼 Buy Entry (Long Position):
Triggered when:

EMA 50 crosses above EMA 200 (Golden Cross)

EMA 200 is sloping upward (shows long-term trend confirmation)

This suggests a strong bullish reversal or trend continuation.

🔽 Sell Entry (Short Position):
Triggered when:

EMA 50 crosses below EMA 200 (Death Cross)

EMA 200 is sloping downward (confirms long-term bearish trend)

This signals a potential market downturn or continuation of a bearish trend.

📏 Risk Management Logic:
Stop Loss (SL): Set as a fixed % away from entry price (default: 1%)

Take Profit (TP): Set using a Risk-Reward ratio (default: 2:1)

For example:
If SL = 1%, and RR = 2 → TP = 2%

These are set using strategy.exit() for accurate backtesting.

⚙️ Adjustable Parameters in Settings Panel:
Parameter Default Purpose
EMA 20 Length 20 Used for visual trend support
EMA Fast Length 50 Used in crossover (faster-moving average)
EMA Slow Length 200 Used in crossover (slower-moving average)
Stop Loss % 1.0 Distance from entry for SL
Risk-Reward Ratio 2.0 Multiplier for TP target

🔔 Alerts Included:
You’ll be notified when:

Golden Cross (buy opportunity)

Death Cross (sell opportunity)

Set alerts in TradingView from the Alerts panel.

✅ Best Timeframes:
1H, 4H, or Daily

Avoid using on extremely low timeframes (like 1m or 5m) without modification

📈 Strategy Use Tips:
Combine with support/resistance zones for higher probability entries

Use EMA 20 as a trailing dynamic SR level

Backtest on multiple assets and timeframes with adjusted SL/RR

Look for volume confirmation manually if needed

All backtested and very profitable