EMA Cross
A simple algorithm built on QuantConnect. Designed to capitalize on short- to medium-term price trends, leveraging the Exponential Moving Average (EMA) of different time frames. The algorithm identifies trend reversals and optimal entry/exit points, aiming to execute trades efficiently based on momentum shifts in the market.
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This strategy is applied to highly liquid U.S. equities, focusing on large-cap stocks to ensure smooth execution and minimal slippage.
The strategy can be adapted for other asset classes and equity universes thanks to its modular design.
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This strategy tracks two EMAs. A long term (slow) and a short term (fast EMA).
A buy signal is triggered when the fast ema crosses above the slow EMA, indicating a potential upward trend.
A sell signal is triggered when the fast EMA crosses below the slow EMA, signaling a downward trend.
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This implementation of the algorithm employs volatility adjusted positions. Additionally, a trailing stop loss is used to lock in profits duing favorable trends, risk per trade is controlled to avoid over exposure.
A final max drawdown limit ensures the algorithm exits all positions if strategy performance dips beyond a pre-specified threshold.