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Strategies / Trend / EMA Crossover With ATR Risk Limits

EMA Crossover With ATR Risk Limits

The strategy buys when the 20-period EMA crosses above the 50-period EMA and sells short when it crosses below, provided no trade is open. Each trade has a stop at 2 times the 14-period ATR and a target at 1.5 times the stop distance.

TrendLong & shortSwingUSD/JPYDaily
1.47Profit factor
12,150Net profit USD
43.91%Win rate
230Trades
-3,030Max drawdown
52.83Avg trade

Best run of 6. USD/JPY, Daily, spread 1, from run pf:2026-10-12-USDJPY-D.tsv:45.

Entry rules, long

  2. No position is currently open
  3. The entry is at market with a stop 2 times the 14-period ATR and a target 1.5 times that stop distance

Entry rules, short

  2. No position is currently open
  3. The stop and target are set in the same way as for long entries

Exit rules

  2. The profit target is 1.5 times the stop distance from the entry price
  3. No other exit applies, so the trade ends only at the stop or the target

Test conditions

PeriodUp to 2026-10-12
InstrumentUSD/JPY, Daily
Spread1 points
Starting capital1,000,000
CostsSpread only. Commissions and overnight financing are not included.
BarsUp to 200,000 bars, fewer where the instrument has less history
Last tested2026-10-12

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
USD/JPYBest runDaily1.47 23043.9112,150 USD-3,030
Dow Jones30 minn/a 1,19642.1411,148 EUR-3,623
US Crude OilDailyn/a 19646.4311,128 EUR-4,366
Brent CrudeDailyn/a 8751.729,092 EUR-2,441
US Crude Oil4 hoursn/a 40142.144,805 EUR-2,506
Nasdaq 100Dailyn/a 17937.993,978 EUR-2,732

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// EMA Crossover With ATR Risk Limits
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Trend
// Direction: Long & short
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false

emafast = ExponentialAverage[20](close)
emaslow = ExponentialAverage[50](close)
myAtr = Average[14](TR(close))
dist = 2.0 * myAtr

13 more lines: the entry and exit rules.

Setup

How to load it

  1. Copy the code with the copy button on the code block.
  2. In ProRealTime, open a chart of the instrument and timeframe you want to test, then open ProOrder > New trading system and choose "Create with programming".
  3. Paste the code, give the system a name and save it.
  4. Click "Backtest", set your own spread and position size, and run it before you consider trading it live.

Indicators used

EMAATRTrue Range
Read this firstKnown weaknesses2 points
  • Results include the spread only. Commissions and overnight financing are not included.
  • The code is published as it was backtested and has not been compiled again since.

Questions

About this strategy

Can I run EMA Crossover With ATR Risk Limits in ProOrder?

Yes. The code is ProBuilder and runs as an automated ProOrder system. Backtest it on your own account with your own spread and position size before trading it live.

Which markets was it tested on?

It was tested on 6 market and timeframe combinations. The best run was USD/JPY, Daily, with a profit factor of 1.47 over 230 trades.

How large was the drawdown?

The best run had a maximum drawdown of 3,030 USD at the tested position size, against a net result of 12,150 USD.

Does it trade long, short or both?

It trades both long and short.

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See how ProRealAlgos combines strategies like this into one automated portfolio.

The ProRealAlgos community gets the full rules, the complete code and the automated portfolio.

Past backtest results do not guarantee future results. This is not financial advice. Curated and maintained by ProRealAlgos. ProRealTime™ is a trademark of ProRealTime SAS. prorealalgos.comStatsDocs