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EMA Ribbon (8/13/21/34/55) Trend

What it does: Enters strong trends when five averages line up in order and price pushes above the fastest. This uses a 'ribbon' of five averages (8, 13, 21, 34 and 55 candles). It buys when they are stacked in order, fastest on top, the price crosses above the 8-candle average, and the price is above its 200-day average.

Style: Trend · Difficulty: Intermediate · Risk: medium · Ready: 2 of 2 variants

When people use it: It tends to work in clean trends where the averages fan out.

Where it struggles: It struggles when the averages are tangled in a sideways market, and it gets in late, after the first push of a trend.

Markets it was written for: BTC, ETH, liquid alts. Timeframes: 4h (1h-1d).

Open it in the Strategy Library (on the Strategies page), pick a variant, adjust the settings and press Add to my strategies. It becomes your own strategy: edit, backtest or trade it like any other.

Long

Enters strong trends when five averages line up in order and price pushes above the fastest.

Labels: Trend Following, Long, Spot, Intermediate, Medium

  • Direction: Buy (long) · Market: spot
  • Trigger: On candle close · Main timeframe: Auto (4h)

Entry

  • IF Price crosses above EMA(8) (4h) and EMA(8) > EMA(13) (4h) and EMA(13) > EMA(21) (4h) and EMA(21) > EMA(34) (4h) and EMA(34) > EMA(55) (4h) and Price > EMA(200) (1d)

Exit: Indicator-Based Exit

  • IF EMA(8) crosses below EMA(21) (4h)
  • Loss controls: Stop-loss % 6%

Settings

Setting Default Editable What changing it does
Stop-loss % 6 Yes Closes the trade if the price moves this far against your entry. Tighter limits each loss but gets hit more often by normal swings; wider gives the trade more room but each losing trade costs more. If you use leverage, keep it well inside your liquidation distance.

How it works (as shown in the app)

  • This uses a 'ribbon' of five averages (8, 13, 21, 34 and 55 candles). It buys when they are stacked in order, fastest on top, the price crosses above the 8-candle average, and the price is above its 200-day average.
  • It sells when the 8-candle average drops below the 21-candle average, or at the stop-loss.
  • It tends to work in clean trends where the averages fan out.
  • It struggles when the averages are tangled in a sideways market, and it gets in late, after the first push of a trend.
  • Built for 4-hour candles (1 hour to 1 day also work). The ribbon is one trend signal; adding more averages won't add new information.
  • You can't change the five average lengths (8, 13, 21, 34 and 55) here yet; they'll become settings once the app supports editing a group of averages together.

Short (perp)

Shorts strong downtrends when five averages line up in order and price drops below the fastest.

Labels: Trend Following, Short, Futures, Medium, Backtest Only

  • Direction: Sell (short) · Market: swap
  • Trigger: On candle close · Main timeframe: Auto (4h)

Entry

  • IF Price crosses below EMA(8) (4h) and EMA(8) < EMA(13) (4h) and EMA(13) < EMA(21) (4h) and EMA(21) < EMA(34) (4h) and EMA(34) < EMA(55) (4h) and Price < EMA(200) (1d)

Exit: Indicator-Based Exit

  • IF EMA(8) crosses above EMA(21) (4h)
  • Loss controls: Stop-loss % 6%

Settings

Setting Default Editable What changing it does
Stop-loss % 6 Yes Closes the trade if the price moves this far against your entry. Tighter limits each loss but gets hit more often by normal swings; wider gives the trade more room but each losing trade costs more. If you use leverage, keep it well inside your liquidation distance.

How it works (as shown in the app)

  • This uses a 'ribbon' of five averages (8, 13, 21, 34 and 55 candles). It shorts when they are stacked in falling order, fastest at the bottom, the price crosses below the 8-candle average, and the price is below its 200-day average.
  • It buys back when the 8-candle average rises above the 21-candle average, or at the stop-loss.
  • It tends to work in clean downtrends where the averages fan out.
  • It struggles when the averages are tangled in a sideways market, and it gets in late, after the first drop of a downtrend.
  • Built for 4-hour candles (1 hour to 1 day also work). The ribbon is one trend signal; adding more averages won't add new information.
  • Shorting means you profit if the price falls and lose if it rises.
  • Suggested leverage is at most 3x. On isolated margin, at 3x the exchange closes the position (liquidation) if the price moves about 33% against you, and you lose the margin you put into it. Keep your stop well inside that.
  • For now this version runs in backtests only; paper and live futures trading are coming later.
  • You can't change the five average lengths (8, 13, 21, 34 and 55) here yet; they'll become settings once the app supports editing a group of averages together.

Warnings

  • "Backtest only for now: paper and live trading of shorts are coming later.": shown on short variants. They need perpetual or futures pairs.
  • Some variants suggest leverage. On isolated margin a liquidation loses the margin in that position; keep any stop well inside the liquidation distance (the Trade Builder warns you when it isn't).
  • Once added, the strategy's conditions get the usual condition checks. Messages show under each condition on the entry / exit conditions screen; setting errors start with the indicator's short name (for example "MACD: Fast must be between 1 and 1000") and block saving, while the other warnings never block saving and repeat in the strategy's Entry or Exit section. See the indicator pages below for each one.
  • "You already have this strategy with these settings (…). Change a setting to add another copy.": shown on the variant's page in the Strategy Library when you already added this variant with the same settings.

Good to know

  • After you add it, the strategy keeps the library's trigger and an Auto main timeframe; you can change both in the builder. Nothing links it back to the library, except that the builder still shows the library's explanations in the info bubbles.
  • Changing a setting before adding it also changes the saved name, so you can tell copies apart.
  • Past results don't predict future ones. Try it in a backtest and on paper before using real money.
  • Indicators used: EMA.