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FXSnipers Quantitative Desk Series

EMA Pullback Trend Strategy

Forex • EURUSD, GBPUSD, XAUUSD • M15 • Trend Following
London & New York Active Window
07:00 - 17:00 UTC
Complexity: Beginner
Max Risk 0.5% - 1.0% maximum equity risk per trade.
Target R:R Fixed 1:2.5 R:R target model with optional partial scaling.
Break-Even Trigger Move stop loss to breakeven once price achieves 1.0R in open profit.
Automation Rule-dependent

Pre-Trade Verification Checklist

Time Window Verification: Ensure current time falls strictly between 07:00 and 17:00 UTC.
200 EMA Bias Check: Confirm price is entirely above (for longs) or below (for shorts) the 200 EMA.
Retracement Identification: Verify price has successfully pulled back and touched or closely interacted with the 50 EMA.
Candle Confirmation: Wait for the M15 bar to close as a clean engulfing pattern matching the trend direction.
Risk Parameters Set: Calculate position size based on 1% risk, placing SL at the pullback extreme and TP at 2.5R.

Entry Execution Criteria

  1. Check macro trend filter: Price must be strictly above the 200 EMA for bullish setups (or strictly below for bearish setups).
  2. Wait for price to retrace toward the 50 EMA value zone during active trading hours (07:00 - 17:00 UTC).
  3. Trigger Entry: On the close of the current M15 bar, enter long if a Bullish Engulfing candle prints touching or respecting the 50 EMA (enter short on a Bearish Engulfing candle for sell setups).

Take-Profit & Target Exit

  • Primary Target: Fixed reward-to-risk ratio of 1:2.5 calculated from entry price to stop loss distance.
  • Alternative Exit: Scale out 50% of the position at 1.5R and trail the remaining position using the 50 EMA line or previous M15 swing structure.

Invalidation & Emergency Exit

  • Setup is voided if the 200 EMA is flat or price crosses the 200 EMA during the pullback phase.
  • Emergency exit triggered if price breaches the opposite swing boundary or volatility expands drastically against the position outside normal ATR parameters.
Stop-Loss Positioning

Stop loss is placed exactly below the swing low of the pullback candle for longs (above the swing high for shorts), or a minimum of 1.5x M15 ATR if the structural swing is too tight.

Documented & Formatted by FXSnipers Strategy Lab • fxsnipers.com/strategy-lab/ema-pullback-trend-strategy
Desk Cheat Sheet Specification v1.0