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.