Exponential Moving Average Crossover Strategy

//@version=5
// Step 1. Define strategy settings
strategy(title=”EMA Crossover”, overlay=true,
pyramiding=0, initial_capital=100000,
commission_type=strategy.commission.cash_per_order,
commission_value=4, slippage=2)

// SMA inputs
fastMALen = input.int(20, title=”Fast EMA Length”)
slowMALen = input.int(50, title=”Slow EMA Length”)

// Stop loss inputs
atrLen = input.int(10, title=”ATR Length”)
stopOffset = input.float(4, title=”Stop Offset Multiple”, step=.25)

// Position sizing inputs
usePosSize = input.bool(true, title=”Use Position Sizing?”)
maxRisk = input.float(2, title=”Max Position Risk %”, step=.25)
maxExposure = input.float(10, title=”Max Position Exposure %”, step=1)
marginPerc = input.int(10, title=”Margin %”)

// Step 2. Calculate strategy values
fastMA = ta.sma(close, fastMALen)
slowMA = ta.sma(close, slowMALen)

atrValue = ta.atr(atrLen)

tradeWindow = time <= timenow – (86400000 * 3)

// Calculate position size
riskEquity = (maxRisk * 0.01) * strategy.equity
riskTrade = (atrValue * stopOffset) * syminfo.pointvalue

maxPos = ((maxExposure * 0.01) * strategy.equity) /
((marginPerc * 0.01) * (close * syminfo.pointvalue))

posSize = usePosSize ? math.min(math.floor(riskEquity / riskTrade), maxPos) : 1

// Step 3. Determine long trading conditions
enterLong = ta.crossover(fastMA, slowMA) and
tradeWindow

longStop = 0.0
longStop := enterLong ? close – (stopOffset * atrValue) :
longStop[1]

// Step 4. Code short trading conditions
enterShort = ta.crossunder(fastMA, slowMA) and
tradeWindow

shortStop = 0.0
shortStop := enterShort ? close + (stopOffset * atrValue) :
shortStop[1]

// Step 5. Output strategy data
plot(fastMA, color=color.orange, title=”Fast SMA”)
plot(slowMA, color=color.teal, linewidth=2, title=”Slow SMA”)

plot(strategy.position_size > 0 ? longStop : na, color=color.green,
linewidth=2, style=plot.style_circles)

plot(strategy.position_size < 0 ? shortStop : na, color=color.red,
linewidth=2, style=plot.style_circles)

// Step 6. Submit entry orders
if enterLong
strategy.entry(“EL”, strategy.long, qty=posSize)

if enterShort
strategy.entry(“ES”, strategy.short, qty=posSize)

// Step 7. Submit exit orders
if strategy.position_size > 0
strategy.exit(“XL”, from_entry=”EL”, stop=longStop)

if strategy.position_size < 0
strategy.exit(“XS”, from_entry=”ES”, stop=shortStop)

if not tradeWindow
strategy.close_all()