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Strategies / Trend / EMA Pullback Trend Continuation (long and short) 3

EMA Pullback Trend Continuation (long and short) 3

The strategy buys when the 50-period EMA is above the 200-period EMA and price pulls back to the 50-period EMA, then closes back above it. It sells short on the mirror setup, with stops beyond the 5-bar extreme and targets 2.5 ATR away.

TrendLong & shortSwingSilver4 hours
2.65Profit factor
178,845Net profit USD
41.28%Win rate
642Trades
-25,141Max drawdown
279Avg trade

Best run of 4. Silver, 4 hours, spread 2, from run pf:2026-10-04-SILVER-4h.tsv:1.

Entry rules, long

  1. The 50-period EMA is above the 200-period EMA.
  2. Volume is above its 20-period average, and the 14-period RSI is above 40.
  3. When flat, one contract is bought with a stop 0.5 ATR below the 5-bar low and a target 2.5 ATR away.

Entry rules, short

  1. The 50-period EMA is below the 200-period EMA.
  2. Volume is above its 20-period average, and the 14-period RSI is below 60.
  3. When flat, one contract is sold short with a stop 0.5 ATR above the 5-bar high and a target 2.5 ATR away.

Exit rules

  1. Positions close only at the stop or target, and no new trade opens while one is open.

Test conditions

PeriodUp to 2026-10-04
InstrumentSilver, 4 hours
Spread2 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 tested2026-10-04

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
SilverBest run4 hours2.65 64241.28178,845 USD-25,141
Dow JonesDailyn/a 4658.7014,733 EUR-4,347
US Crude OilDailyn/a 7048.574,480 EUR-3,566
Brent Crude4 hoursn/a 32048.753,462 EUR-3,050

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// EMA Pullback Trend Continuation (long and short) 3
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Trend
// Direction: Long & short
// Timeframe tested: 4 hours
// ==============================================================

DEFPARAM CumulateOrders = false

emaf = ExponentialAverage[50](close)
emas = ExponentialAverage[200](close)
rsival = RSI[14](close)
atrval = AverageTrueRange[14](close)

36 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

ATREMARSISMAVolume
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 Pullback Trend Continuation (long and short) 3 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 4 market and timeframe combinations. The best run was Silver, 4 hours, with a profit factor of 2.65 over 642 trades.

How large was the drawdown?

The best run had a maximum drawdown of 25,140 USD at the tested position size, against a net result of 178,844 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