LBR's Game Theory EMA Strategy - Alternate by uzair2join
By uzair2join
Performance Metrics
- Author: uzair2join
- Symbol: ICMARKETS:XAUUSD
- Timeframe: 3 hours
- Net P&L: +548.58 USD (+5.49%)
- Win Rate: 75.0%
- Profit Factor: 3.974
- Max Drawdown: 293.22 USD (2.85%)
- Total Trades: 4
Description
Game Theory EMA StrategyOverview: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 FilterTrades can be restricted to environments with expanding trend strength.Risk ManagementDefault 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 DistanceStops and targets expand or contract automatically based on market volatility.Intended UseDesigned 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.