OPEN-SOURCE SCRIPT
LBR's Game Theory EMA Strategy - Alternate
Game Theory EMA Strategy
Overview:
This strategy combines EMA crossover structure with a normalized momentum “utility edge” model to filter low-conviction trades.
Instead of trading every EMA crossover, the script evaluates whether directional momentum statistically favors buyers or sellers before entering.
Core Logic:
EMA Structure Shift:
A fast EMA crossing a slow EMA signals a possible momentum transition.
Trend Alignment:
Trades are only taken in the direction of a higher timeframe trend (Trend EMA).
Utility Edge Filter:
RSI is normalized around 50 to estimate directional advantage:
• RSI > 55 → Buyers show advantage
• RSI < 45 → Sellers show advantage
• Between 45–55 → Considered equilibrium zone (no trade)
Optional ADX Filter
Trades can be restricted to environments with expanding trend strength.
Risk Management
Default Properties:
• Initial Capital: 10,000
• Risk per trade: 2% of equity
• Risk–Reward Ratio: 1.5:1
• Commission: 0.05%
• Slippage: 1 tick
• Max Trades per Day: 5
• Daily Loss Limit: 2%
Position sizing is volatility-adjusted:
Position Size = (2% Equity) ÷ ATR Stop Distance
Stops and targets expand or contract automatically based on market volatility.
Intended Use
Designed for trending instruments.
Users are encouraged to test on long historical datasets to ensure sufficient trade sample size.
This strategy does not predict price direction. It reacts to structural and momentum shifts.
Past performance does not guarantee future results.
Overview:
This strategy combines EMA crossover structure with a normalized momentum “utility edge” model to filter low-conviction trades.
Instead of trading every EMA crossover, the script evaluates whether directional momentum statistically favors buyers or sellers before entering.
Core Logic:
EMA Structure Shift:
A fast EMA crossing a slow EMA signals a possible momentum transition.
Trend Alignment:
Trades are only taken in the direction of a higher timeframe trend (Trend EMA).
Utility Edge Filter:
RSI is normalized around 50 to estimate directional advantage:
• RSI > 55 → Buyers show advantage
• RSI < 45 → Sellers show advantage
• Between 45–55 → Considered equilibrium zone (no trade)
Optional ADX Filter
Trades can be restricted to environments with expanding trend strength.
Risk Management
Default Properties:
• Initial Capital: 10,000
• Risk per trade: 2% of equity
• Risk–Reward Ratio: 1.5:1
• Commission: 0.05%
• Slippage: 1 tick
• Max Trades per Day: 5
• Daily Loss Limit: 2%
Position sizing is volatility-adjusted:
Position Size = (2% Equity) ÷ ATR Stop Distance
Stops and targets expand or contract automatically based on market volatility.
Intended Use
Designed for trending instruments.
Users are encouraged to test on long historical datasets to ensure sufficient trade sample size.
This strategy does not predict price direction. It reacts to structural and momentum shifts.
Past performance does not guarantee future results.
Script open-source
Nello spirito di TradingView, l'autore di questo script lo ha reso open source, in modo che i trader possano esaminarne e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricordiamo che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.
Script open-source
Nello spirito di TradingView, l'autore di questo script lo ha reso open source, in modo che i trader possano esaminarne e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricordiamo che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.