EMA8/13 Price Action — Strategy by a435155025
By a435155025
Performance Metrics
- Author: a435155025
- Symbol: NASDAQ:QQQ
- Timeframe: 5 minutes
- Win Rate: 41.3%
- Profit Factor: 1.432
Description
EMA8/13 Price Action Breakout StrategyThis strategy is a trend-following breakout system based on the EMA8/EMA13 ribbon, price action signal candles, Session VWAP filtering, and strict daily risk controls.The core idea is simple:Trade only in the direction of the short-term trend.Wait for a strong price action candle around the EMA8/EMA13 area.Enter only when price breaks the signal candle.Use predefined stop-loss, take-profit, and daily stop rules.1. Trend DirectionThe strategy uses two exponential moving averages:Fast EMA: 8Slow EMA: 13For long trades, EMA8 should be above EMA13.For short trades, EMA8 should be below EMA13.This creates a short-term trend filter. The strategy avoids taking long trades when the EMA structure is bearish, and avoids taking short trades when the EMA structure is bullish.2. Session VWAP FilterThe strategy also uses Session VWAP as a directional filter.If price is above Session VWAP, only long trades are allowed.If price is below Session VWAP, only short trades are allowed.This prevents the strategy from fighting the main intraday institutional average price.3. Signal Candle LogicThe strategy looks for a strong signal candle near the EMA8/EMA13 band.For a valid long signal:The candle must be bullish.The close must be above EMA8.The candle should either touch/cross the EMA8/EMA13 band, or be a strong detached candle above EMA8.The signal must pass the current trend and VWAP filters.For a valid short signal:The candle must be bearish.The close must be below EMA8.The candle should either touch/cross the EMA8/EMA13 band, or be a strong detached candle below EMA8.The signal must pass the current trend and VWAP filters.This means the strategy is not entering randomly on every EMA touch. It waits for a price action confirmation candle first.4. Breakout EntryThe strategy does not enter immediately at the signal candle close.Instead, it places a stop entry order:Long entry: above the high of the signal candle.Short entry: below the low of the signal candle.This makes the entry a breakout confirmation.If price does not break the signal candle within the allowed number of bars, the pending order is canceled.5. Stop LossThe stop loss can be based on different methods, but the main logic uses the signal candle.For long trades:Stop loss is placed below the signal candle low, with an optional ATR buffer.For short trades:Stop loss is placed above the signal candle high, with an optional ATR buffer.The strategy also applies a minimum stop distance to avoid stops that are too tight.6. Take ProfitThe take-profit is calculated by a fixed reward-to-risk ratio.For example, if the setting is 2R:Risk = distance from entry to stop loss.Target = 2 times that risk.So if the trade risks $1.00, the take-profit target is $2.00 away from entry.7. Optional Break-Even and Trailing StopThe strategy includes optional break-even and ATR trailing stop functions.However, these are optional because in backtesting they may reduce expectancy depending on market conditions.The clean version of the strategy mainly uses:fixed stop lossfixed take profitno trailing stopno break-even unless testing shows improvement8. Time FilterThe strategy only opens new trades during the selected trading window.For example:Start: 09:31 or 10:00End: 16:00At the end of the session, the strategy can force close all open positions, so no trade is held overnight.9. Daily Risk ControlThe strategy includes daily protection rules:Stop trading after a set number of losing trades in one day.Stop trading after a set number of consecutive winning trades in one day.Optional maximum daily loss limit.This is designed to avoid overtrading, especially during choppy range-bound days.10. Alert LogicThe strategy can trigger TradingView alerts for:long signalshort signalentry filledtrade closedsession force closeThese alerts can be used for manual trading, mobile notifications, or future webhook automation.Strategy SummaryThis is a rule-based intraday trend breakout strategy.It combines:EMA8/EMA13 trend structureprice action signal candlesSession VWAP direction filterbreakout confirmation entryfixed risk/reward exitsdaily loss and win-limit protectionno overnight holdingThe strategy is designed to perform best during clean trending intraday conditions. Its main weakness is choppy sideways markets, where price repeatedly crosses the EMA band without follow-through.