Trend Following5m / 15m CandlesComplexity: Beginner

Dual EMA Golden Cross Momentum

A classic trend-following system that captures strong directional momentum when a fast Exponential Moving Average crosses above a slow Exponential Moving Average, confirmed by RSI and ADX trend strength filters.

Public & Generic Educational Strategy Notice: This strategy blueprint represents a publicly known mathematical formulation and standard technical analysis concept. Algo Software Innovations does NOT claim proprietary copyright, invention, or exclusive ownership over these formulas. You can adapt, customize, and deploy this logic to your private cloud VPS.

Mathematical Logic & Formula Formulation

Trigger = Cross(EMA_9, EMA_21) confirmed by (RSI_14 > 55) and (ADX_14 > 20)

Deterministic Entry Rules

Long Entry (BUY)

✓9 EMA crosses ABOVE 21 EMA on completed candle close.
✓RSI(14) is strictly GREATER than 55.0 (confirming bullish momentum).
✓ADX(14) is GREATER than 20.0 (filtering out sideways chop).

Short Entry (SELL)

✓9 EMA crosses BELOW 21 EMA on completed candle close.
✓RSI(14) is strictly LESS than 45.0 (confirming bearish momentum).
✓ADX(14) is GREATER than 20.0.

Exit Criteria & Stop Loss Protection

Initial Stop Loss1.0% from Entry Price OR Recent Swing Low (whichever is closer). Trailing SL activates after +1.0% gain to lock breakeven.

Target Profit2.0% - 3.5% initial target (Partial exit 50% at +2%, trail remaining with 9 EMA).

Risk/Reward Expectancy1 : 2.5

Strategy Configuration Specs

Market Segment:NSE Equities, Nifty & BankNifty Futures

Candle Timeframe:5m / 15m Candles

Risk-to-Reward Ratio:1 : 2.5

Throttling Compliance:≤ 10 OPS Enforced

Required TA-Lib Indicators:

EMA (9, Close)EMA (21, Close)RSI (14, Close)ADX (14)

Risk Management Controls

•Position sizing limited to 2% capital risk per trade.
•Max 3 trades per trading session to avoid overtrading.
•Auto-kill execution if daily portfolio drawdown exceeds 3%.

Target Trader Profile:Ideal for intraday equity traders and index futures seeking high win-rate trending setups.