EMA breakout with ATR sizing strategyvsSMA breakout (Donchian-style) strategy
EMA breakout with ATR sizing strategy: Cross above a 20-bar EMA, trail the position with ATR-aware stop bands. · SMA breakout (Donchian-style) strategy: Buy a fresh push above the 20-bar mean and trail the winner until it folds.
EMA breakout with ATR sizing strategy
Cross above a 20-bar EMA, trail the position with ATR-aware stop bands.
SMA breakout (Donchian-style) strategy
Buy a fresh push above the 20-bar mean and trail the winner until it folds.
Indicators
- EMA (period 20)
- ATR (period 14)
- SMA (period 20)
Timeframes
Bias
Long only
Long only
Market fit
Volatility shifts
Volatility expansion
Entry rules
- Enter long when close crosses above EMA(20).
- Cooldown of 4 bars after exit.
- Enter long when close crosses above the 20-bar SMA.
- 4-bar cooldown after exit reduces back-to-back whipsaws.
Exit rules
- Cross back below EMA(20) closes the trade.
- Hard 5% stop; trailing 4% stop locks in winners as ATR shifts.
- Close on a cross back below the SMA.
- Trailing 5% stop catches deeper retracements before the SMA flips.
Expected behavior
Long stretches of flat or modest growth followed by occasional sharp jumps when a sustained trend follows the EMA-cross signal. Quiet markets generate few setups by design.
Trendy growth in directional regimes punctuated by ugly chop when price oscillates around the SMA. Best paired with a higher-timeframe trend filter to skip the chop.
Complexity
Which one is right for you?
Derived from the bias, timeframe and indicator profile of each strategy — not a back-test forecast.
When to pick EMA breakout with ATR sizing strategy
- You expect volatility shifts — the thesis is "Cross above a 20-bar EMA, trail the position with ATR-aware stop bands."
- You want a long-only bot on 1h–1d candles with a balanced rule-set.
- You're comfortable monitoring 2 indicators (EMA (period 20), ATR (period 14)).
Cross above a 20-bar EMA, trail the position with ATR-aware stop bands.
When to pick SMA breakout (Donchian-style) strategy
- You expect volatility expansion — the thesis is "Buy a fresh push above the 20-bar mean and trail the winner until it folds."
- You want a long-only bot on 1h–1d candles with a balanced rule-set.
- You're comfortable monitoring 1 indicator (SMA (period 20)).
Buy a fresh push above the 20-bar mean and trail the winner until it folds.
EMA breakout with ATR sizing strategy
Cross above a 20-bar EMA, trail the position with ATR-aware stop bands.
SMA breakout (Donchian-style) strategy
Buy a fresh push above the 20-bar mean and trail the winner until it folds.
Related comparisons
Other pairings that involve one of these strategies.
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