EMA Pullback Strategy

EMA Pullback Scalping – HTF ADX & MA Spread Filter

This strategy is designed for trend-based scalping and intraday trading, with a strong focus on filtering out choppy market conditions.

The core idea is simple:
trade pullbacks inside a clean trend, and avoid entries when the market lacks structure or momentum.

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🔹 Core Logic
• Trend definition
• The main trend is defined using EMA 50 on the base timeframe.
• Long trades are considered only when price is above EMA 50 and EMA 9 > EMA 21.
• Short trades are considered only when price is below EMA 50 and EMA 9 < EMA 21.
• Pullback entry
• Entries are triggered on pullbacks toward EMA 21, followed by price strength in the direction of the trend.
• This avoids chasing breakouts and focuses on higher-probability continuation entries.

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🔹 Market Regime Filters

To avoid overtrading during ranges and low-quality conditions, several filters are applied:
• Higher-Timeframe ADX (x3 timeframe)
• Ensures the broader market structure has enough directional strength.
• An optional adaptive threshold can be used instead of a fixed ADX value.
• EMA Spread Filter (base timeframe)
• Requires a minimum separation between EMA 21 and EMA 50.
• This prevents trading when EMAs are compressed and price action is choppy.
• The spread can be measured either as:
• a percentage of price, or
• a multiple of ATR (recommended).

This combination makes the strategy far more selective and helps keep trades aligned with genuine trends rather than noise.

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🔹 Risk Management
• Position size is calculated based on a fixed risk percentage of equity.
• Stop loss and take profit are defined in percentages.
• An optional delayed trailing stop can be enabled:
• The trailing stop only activates once price has moved favorably by a user-defined amount.
• This helps protect profits without cutting strong trends too early.

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🔹 Best Use Cases
• Works best on BTC perpetuals and other highly liquid markets.
• Particularly suited for 15m and 4H timeframes, but adaptable to lower timeframes with tighter filters.
• Designed for trending environments, not range-bound markets.