5 EMA Strategy by Subasish Pani

Execution Details

1. We, Myalgomate Technologies LLP, are a technology provider platform and do not act/intend to act as a wealth manager/ advisor in any capacity.
2. This tool is an automated version of the strategy available in the public domain.
   We neither endorse this strategy nor provide backtest data or any standard configuration.
   All the parameters are configurable and user needs to decide their own parameter to use the software.
3. The intention behind automating this strategy is to help those traders who are already trading on a similar strategy and want to automate it.

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Demonstration Video:

Instruments to trade:

• Equity, Equity Futures, Index Futures, Index Options (Finnifty excluded)

Intraday or Positional:

• Intraday

Different modes of trading:

Execution Details:

• You can decide whether to take buy-side signals/sell-side signals/ both only or sell-side signals only.
• You can set the max no of trades per script and the total no of trades across all the symbols.
• At every candle close, it will be checked for signal. The signal is scanned during the start time and stop time mentioned. At exit time, it will exit all positions.

Buy Side Trades:

• Signal Candle: High of the candle should not touch EMA. This candle will be called a Signal candle.
• If the price goes above the high of the Signal Candle High, it will buy.
• If you have enabled Triggered valid till the next candle, then the high of the signal candle should be broken in the next candle otherwise it will invalidate the trade.

Sell Side Trades:

• Signal Candle: Low of the candle should not touch EMA. This candle will be called a signal candle.
• If the price goes down below the signal candle low, then it will sell.
• If you have enabled Triggered valid till the next candle, then the low of the signal candle should be broken in the next candle otherwise it will invalidate the trade.

Strike Configuration:

For strike configuration, there are two modes available:

1. Entry by ATM Points
2. Entry by Closest Premium

Entry by ATM Points:

Examples:

1. Underlying Price: 35125, CE  ATM Points = 0, PE ATM Points = 0
   ATM Strike = 35100
   CE Strike selected = 35100
   PE Strike selected = 35100
2. Underlying Price: 35125, CE  ATM Points = 100, PE ATM Points = 100
   ATM Strike = 35100
   CE Strike selected = 35100 + 200 = 35200
   PE Strike selected = 35100 – 200 – 35000
3. Underlying Price: 35125, CE  ATM Points = -100, PE ATM Points = -100
   ATM Strike = 35100
   CE Strike selected = 35000
   PE Strike selected = 35200

Entry by Closest Premium (CP):

Examples:

• Closest Premium Price: 100, Type: “~”
  It will select the option contract nearest to the price of 100.
• Closest Premium Price: 100, Type: “>=”
  It will select the option contract nearest and above the price of 100.
• Closest Premium Price: 100, Type: “<=”
  It will select the option contract nearest and below the price of 100.

Quantity Configuration:

• For Equity, you can set quantity based on The of Shares/ Capital per Trade/ Risk per Trade
• For Futures & Options, it will be based on the no of lots.

Exit Criteria: (Exit conditions currently on website)

• Time-Based Exit
• User exits positions from software
• N Candles H/L from the signal:
  • For example, if you have set the value = 3, then for a sell signal, it will set the SL to the highest of high of the last 3 candles including a signal candle. For the Buy signal, it will set the SL to the lowest low of the last 3 candles including the signal candle.
• SL & Target based on %/Pts:
  • You can enable SL/target based on the % or points of the entry price.
• RR-Based Target
  • For Sell side trade: If you have set the RR-based target = 2, entry price = 100, and SL price = 102, then the target will be 96. Opp. for the buy side.
• Exit based on EMA Touch:
  • For sell-side trade, when the price comes down and touches the EMA, it will exit the position. For buy-side trade, when the price goes up and touches the EMA, it will exit the position.

• Exit based on Candle Close above / below EMA:
  • For sell-side trade, when the price comes down and the candle closes below the EMA, it will exit the position. For buy-side trade, when the price goes up and closes above the EMA, it will exit the position.

Protect Profit:

There are three modes available to protect profits:

• Lock Minimum Profit
• Trail Profits
• Lock & Trail Profits

Lock Minimum Profit:

Example:
If Profit Reaches = 10000
Lock Min Profit At = 5000

When your profit reaches 10000, it will lock the minimum profit at 5000. So when your MTM comes down to 5000, it will exit all positions.
This happens one time only.

Trail Profits:

Example:
Increase in Profit = 5000
Trail Min Profit by = 3000

With every 5000 increase in profit, it will trail your min profit by 3000.
When profit reaches 5000, min profit locked at 3000
When profit reaches 10000, min profit locked at 6000 and so on…

Lock & Trail Profits:

In this mode, first, it will lock the profit at Lock Min Profit value and then it will start trailing profits.

Example:
If Profit Reaches = 10000
Lock Min Profit At = 5000
Increase in Profit = 5000
Trail Min Profit by = 3000

When your profit reaches 10000, it will lock in profit at 5000
After that,
When your profit reaches 15000, min profit locked at   8000
When your profit reaches 20000, min profit locked at   11000 and so on…

Please note, when your profit comes down to lock profit level, it will start exiting positions. It doesn’t mean that you will get the exact profit as per your lock profit value.