BTC EMA Pullback Trend Follower
This is a 1-hour BTC trend-following strategy that buys pullbacks to the 20 EMA when the trend is up, using a stop order above the pullback candle, an ATR-based initial stop, and a trailing stop on the remaining half.
Market Crypto
Style Trend following
Timeframe Day 15m-1h (1h)
Level Advanced
Tools EMA, ATR
Saved 1 time
Run 0 times Tested
3 months tested, 37% win rate, average 0.10R, max drawdown 4.0%. BTC, 1h candles. Past results do not guarantee future results.
The rules
Setup Lane (first to light up) crypto Instrument(s) BTC-USD Primary timeframe 1 hour Fast EMA length 20 Slow EMA length 50 Trend rule (exact) 20 EMA above 50 EMA and price closes above 20 EMA
Trigger Pullback definition price pulls back and touches the 20 EMA
Entry Entry trigger stop order 1 tick above the high of the pullback candle Entry buffer (ticks/pips) 1 tick Order type stop order
Stop Initial stop 1.5 times ATR 14 below entry ATR length (if ATR stop) 14 ATR multiple 1.5
Exit Trailing stop method trail under each higher swing low after taking half off Profit target (optional) 2R for half position
Risk Risk per trade 0.5% Max concurrent positions 2 Daily loss limit / kill switch 2%
Strengths Clear trend filter using EMA alignment and price closes, which avoids counter-trend entries. Defined entry trigger and initial stop based on ATR, giving a consistent risk per trade. Trailing the second half under swing lows lets winners run while locking in some profit at 2R. Risks Pullbacks can fail and price can reverse sharply, hitting the 1.5 ATR stop before any profit. In choppy or ranging markets, the EMA trend filter may give false signals, causing repeated small losses. Trailing under swing lows can give back a large portion of unrealized gains if swings are wide. Source
A JustWavey pick: a well known public strategy, written out in plain words by the JustWavey team.
Version history
Version Saved Changed boxes 1 2026-10-17 First version
You could lose all of your money, and we do not guarantee any refunds, explanations, or funding.