The "EMASkipPump" strategy is designed to avoid pump and dump market conditions. It utilizes a combination of moving averages and other technical indicators to determine entry and exit points for trades. Key components of the strategy:
Exponential Moving Averages (EMAs): Three EMAs with different time periods (short-term, medium-term, and long-term) are calculated and used as indicators.
Bollinger Bands: Bollinger Bands are calculated using the typical price and standard deviations to identify price volatility.
Minimum and Maximum Prices: The minimum and maximum prices over a specified time period are calculated using the EMA medium-term.
Entry Trend: Entry points for long positions are identified based on the following conditions:
Volume is below 20 times the 30-day rolling average volume. The closing price is below all three EMAs. The closing price is equal to the minimum price. The closing price is less than or equal to 92% of the lower Bollinger Band. Exit Trend: Exit points for long positions are identified based on the following conditions:
The closing price is above both the short-term and medium-term EMAs. The closing price is above the maximum price. The closing price is greater than or equal to 103% of the upper Bollinger Band. The strategy has a minimal return on investment (ROI) target of 3% and a stop loss of 5%. The timeframe used for the strategy is 5 minutes. Overall, the EMASkipPump strategy aims to avoid pump and dump scenarios by considering various technical indicators to determine favorable entry and exit points for long positions.