MA Crossover Strategy with TP/SL (5 EMA Filter)

How the Strategy Works on a 5-Minute Chart:
Data Input (5-Minute Candles):

Every single data point (candle) on your chart will represent 5 minutes of price action (Open, High, Low, Close for that 5-minute period).

All calculations (MAs, EMA, signals) will be based on these 5-minute price data points.

Moving Average Calculations:

Fast MA (10-period SMA): This will be the Simple Moving Average of the closing prices of the last 10 five-minute candles. It reacts relatively quickly to recent price changes.

Slow MA (30-period SMA): This will be the Simple Moving Average of the closing prices of the last 30 five-minute candles. It represents a slightly longer-term trend compared to the Fast MA.

5 EMA (5-period EMA): This is the Exponential Moving Average of the closing prices of the last 5 five-minute candles. Being an EMA, it gives more weight to the most recent 5-minute prices, making it very responsive to immediate price action.

Signal Generation (Entry Conditions):

Long Entry Signal:

The 10-period SMA crosses above the 30-period SMA (indicating a potential bullish shift in the short-to-medium term trend).

AND the current 5-minute candle's closing price is above the 5-period EMA (confirming that the immediate price momentum is also bullish and supporting the crossover).

If both conditions are met at the close of a 5-minute candle, a "Buy" signal is generated.

Short Entry Signal:

The 10-period SMA crosses below the 30-period SMA (indicating a potential bearish shift).

AND the current 5-minute candle's closing price is below the 5-period EMA (confirming immediate bearish momentum).

If both conditions are met at the close of a 5-minute candle, a "Sell" signal is generated.

Trade Execution:

When a signal is triggered, the strategy enters a trade (long or short) at the closing price of that 5-minute candle.

Immediately upon entry, it places two contingent orders:

Take Profit (Target): Set at 2% (by default) away from your entry price. For a long trade, it's 2% above; for a short trade, 2% below.

Stop Loss: Set at 1% (by default) away from your entry price. For a long trade, it's 1% below; for a short trade, 1% above.

The trade will remain open until either the Take Profit or Stop Loss price is hit by subsequent 5-minute candles.

Implications for Trading on a 5-Minute Chart:
Increased Trade Frequency: You will likely see many more signals and trades compared to higher timeframes (like 1-hour or daily charts). This means more potential opportunities but also more transaction costs (commissions, slippage).

Sensitivity to Noise: Lower timeframes are more prone to "market noise" – small, random price fluctuations that don't indicate a true trend. While the 5 EMA filter helps, some false signals might still occur.

Faster Price Action: Price movements can be very rapid on a 5-minute chart. Your take profit or stop loss levels might be hit very quickly, sometimes within the same or next few candles.

Parameter Optimization is Crucial: The default MA lengths (10, 30) and EMA (5) might not be optimal for every asset or market condition on a 5-minute chart. You'll need to backtest extensively and potentially adjust these lengths, as well as the targetPerc and stopPerc, to find what works best for the specific instrument you're trading.

Risk Management: The fixed percentage stop loss is vital on a 5-minute chart due to its volatility. Without it, a few unfavorable moves could lead to significant losses.