EMA 40 Pullback Pyramid Strategy: backtest on crypto, and how the rule works

EMA 40 Pullback Pyramid Strategy at a glance

Kind of rule	Betting on a snap-back (mean reversion)
Buys or sells	It only buys. It does not bet on falling prices.
Built on	ADX / DMI, ATR, EMA
Where it was published	TradingView, by its author, as a Pine Script strategy
Tested on	67 cells: 15 coins, October 2021 to June 2026, no fee
Cells that placed a trade	65 of 67
Middle result before fees	+0.0%
Cells above zero	0 of 65
Middle drawdown before fees	2.8%
Page updated	2026-11-08

EMA 40 Pullback Pyramid Strategy backtest results, every cell

Every cell is in the picture, not only the strongest. To the right of the black line is above zero. The orange line, when you see one, is the middle.

Each bar is the middle result for that chart speed. The number in parentheses is how many cells. The black line is zero.

Each bar is a group of cells with a similar result. The number on a bar is how many cells landed there. Bars to the right of the black line finished above zero.

How EMA 40 Pullback Pyramid Strategy works

Rules in this group usually work like this. It buys after a fall and sells after a rise, on the idea that price returns toward normal. The wins are usually small and frequent. The loss comes when price does not return and the stretch turns into a trend. The next paragraph is this particular rule, which can be narrower than the group.

It only buys. It does not bet on falling prices. It acts only when several checks agree at once. It leans on ATR, DMI, EMA; those names are explained on their own pages, further down. The exact line is in the list below, in the author's names, and you can skip that list. It gets out when another set of checks agrees. That line is in the list below too.

Each trade uses 33 percent of the account. It can stack up to 3 trades in the same direction.

The exact condition, from the code

Same rule, translated from the code, in the author's names. You can skip this list if the paragraph above was enough.

Enters long when (col up and not (the previous col up) and ADX is above ADX min. to trade (20) or pullback candidate or Use EMA cross signals in strategy orders (on) and EMA buy signal) and (the bar index − last entry bar) is at or above Minimum bars between entries (5).
Closes the position when (col down and not (the previous col down) or Use EMA cross signals in strategy orders (on) and EMA sell signal).

Buys or sells	It only buys. It does not bet on falling prices.
Tools it calculates	ADX / DMI, ATR, EMA
A second chart speed	No. It uses one chart speed only.
Only at certain hours	Yes. It only acts during set hours.
Adding to a trade	It can stack up to 3 trades in the same direction.
How much it trades	Each trade uses 33 percent of the account.
Cost the author assumed	The author assumed a trading cost of 0.1 percent per side.

Default settings

The test used the defaults in the middle column. Nothing was turned to help a coin.

Setting	Default	Group
Start Date	a date
End Date	a date
Fast EMA length	40
DI length	14
ADX smoothing	14
ADX min. to trade	20
Enable pullback re-entry	on
Pullback distance x ATR	1
ATR length	14
Minimum bars between entries	5
Use EMA 40 cross buy/sell signals	on
EMA cross detection mode	Close
Use EMA cross signals in strategy orders	on

How the backtest was run

Every strategy was tried the same way, on the settings the author published.

The years are October 2021 to June 2026. The prices are from Bybit, for 13 widely traded coins, mostly on hourly, 4-hour and daily charts, with some faster charts. That was 47,242 tries. The window stored in the files is 2021-09..2026-06.

599 rules produced a finished try. A rule that finished above zero on at least 12 cells, before any fee, was tried again with a fee of 0.12 percent per side. Only buys are counted in that second try. 273 rules got it.

The method, the aggregate results and a downloadable table are on the study page. What the desk does with the results beyond these pages is its own.

Before any fee, it was tried on 67 cells. It placed a trade on 65 of them. 0 of the cells that traded finished above zero (0.0%).

It was not run a second time with a fee. That second pass happens only when at least 12 cells finished above zero before fees. 273 rules got that pass.

Cells tried	67
Cells that placed a trade	65
Finished above zero	0 (0.0% of the cells that traded)
Middle result, before fees	+0.0%
Strongest cell, the top of the range	AAVE daily: +0.0%
Weakest cell, the bottom of the range	AAVE daily: +0.0%
Middle drawdown, before fees	2.8%

Label: backtest · old prices, zero commission · Oct 2021 – Jun 2026. Hypothetical results; see the risk disclosure.

How to read the result

How to read the number

The median of every cell that traded is the result. No fee has been taken off, so the number is a ceiling. A fee comes off each trade, and this page does not guess that cost, because this rule did not get the second pass where the fee is applied. The weakest and the strongest cells are not a result on their own.

The middle drawdown, on the cells that traded, was 2.8%.

What this does not show

The useful question is the stretch that never snapped back. That is where a year of small wins can disappear.

Nothing on this page was fit to the cell that finished highest. One coin, one chart speed, or one strong stretch is a single row. It is not the rule. Other years, another exchange, or another fee would be a different measurement.

Questions about EMA 40 Pullback Pyramid Strategy

What is EMA 40 Pullback Pyramid Strategy?

EMA 40 Pullback Pyramid Strategy is a mean reversion trading strategy published on TradingView as a Pine Script. In plain terms it is a rule of the kind this site calls betting on a snap-back. It only buys. It does not bet on falling prices. It is built on ADX / DMI, ATR, EMA. This page reads the rules from the code and reports what they did on old crypto prices.

How does EMA 40 Pullback Pyramid Strategy work?

Is EMA 40 Pullback Pyramid Strategy profitable in a backtest?

Before any fee, 0 of 65 cells that traded finished above zero, and the median of those cells was +0.0%. No fee has been taken off, so that number is a ceiling. The rule did not reach the second pass where a fee is charged on every trade.

Where can I find the EMA 40 Pullback Pyramid Strategy script?

It is published on TradingView by its author. Search TradingView for the title to find the original script. This page is an independent reading and is not affiliated with the author.

What does backtest mean on this page?

Backtest means the rule was replayed on old prices from Bybit. No real money moved. Every number on this page carries that label, and old prices do not promise anything about new ones.

Words used on this page

Backtest: The rule was tried on old prices. No real money moved.
Cell: One coin on one chart speed. Bitcoin every 4 hours is one cell. Bitcoin once a day is another.
Chart speed: How often a new price bar is drawn. 15m means every 15 minutes, 1h means hourly, 4h means every 4 hours, 1D means once a day.
Fee, per side: A cost taken each time the rule trades. Per side means once on the way in and once on the way out.
Median: Line the cells up from the biggest loss to the biggest gain. The median is the middle one. Half the cells did better and half did worse.
Drawdown: The deepest fall from a high point along the way, as a percent of the account at that high.
Above zero: The account finished with more than it started.

The indicators EMA 40 Pullback Pyramid Strategy uses

Each has its own page: what it measures, how it is read, where it misleads.

"EMA 40 Pullback Pyramid Strategy" was published on TradingView by its author, under the author's own license. This page is an independent reading of those rules and of what they did on these old prices. It is not written with the author, and it is not a recommendation. Not every detail survives the translation onto this page, so read the original before you rely on it.

EMA 40 Pullback Pyramid Strategy