12/21 EMA STRAT - [RZ]

12/21 EMA Strategy with Performance Analytics

👁️ - OVERVIEW

This indicator implements a simple yet effective exponential moving average (EMA) crossover strategy that compares a 12-period EMA against a 21-period EMA. The system generates long signals when the 12 EMA is positioned above the 21 EMA, and moves to cash when the 12 EMA falls below the 21 EMA.

🧠 - STRATEGY LOGIC

Signal Generation:

• Long Position: Activated when 12 EMA > 21 EMA
  
• Cash Position: Activated when 12 EMA < 21 EMA
  

Technical Implementation:

• Uses perpetual condition checks instead of crossover/crossunder functions to prevent signal misgeneration and ensure reliability
  
• Implements barstate.isconfirmed validation to eliminate repainting issues and ensure all signals are confirmed on closed bars
  
• Provides clean, reliable signals suitable for both backtesting and live trading
  

⚙️ - FEATURES

The indicator includes a comprehensive table displaying real-time performance metrics comparing the strategy against a buy-and-hold approach:

• Sharpe Ratio: Risk-adjusted return measurement
  
• Sortino Ratio: Downside risk-adjusted return measurement
  
• Omega Ratio: Probability-weighted ratio of gains versus losses
  
• Maximum Drawdown %: Largest peak-to-trough decline
  

Visual Components

• Equity Curves: Plots both strategy equity and buy-and-hold equity for visual comparison
  
• Status Table: Real-time display of current position (Long/Cash) and performance metrics
  
• Clean Chart Interface: Easy-to-read visualization of strategy performance
  

Alert System

• Long signal triggers
  
• Cash signal triggers
  

📝 - How to Use

• Add the indicator to your chart
  
• Review the performance metrics table to compare strategy vs. buy-and-hold
  
• Monitor the equity curves to visualize strategy performance
  
• Set up alerts for long and cash signals if desired
  
• Use the current position indicator to track strategy status
  

📊 - Multi-Timeframe Compatibility

This indicator works across multiple timeframes, however, performance characteristics vary significantly depending on the timeframe selected:

• Different timeframes will produce different results
  
• Strategy performance may be optimal on certain timeframes and underperform on others
  
• DYOR (Do Your Own Research): Users are strongly encouraged to backtest the strategy on their preferred timeframes and market conditions before use
  
• Test extensively with historical data to understand the strategy's behavior in your specific use case
  

ETH


SOL

⚠️ - DISCLAIMER

This indicator is provided for educational and informational purposes only. It is NOT financial advice, investment advice, or a recommendation to buy or sell any security or financial instrument.

• Past performance does not guarantee future results
  
• Trading involves substantial risk of loss and is not suitable for all investors
  
• You should carefully consider your financial situation and risk tolerance before making any trading decisions
  
• Always conduct your own research and consult with a qualified financial advisor before making investment decisions
  
• The creator of this indicator assumes no responsibility for any financial losses incurred through the use of this tool
  
• Use this indicator at your own risk