EMA and Dow Theory Strategies V4.1

EMA and Dow Theory Strategies V4.1 at a glance

Kind of rule	Breakout
Buys or sells	It can buy, and it can bet on falling prices.
Built on	ADX / DMI, ATR, Donchian Channels, EMA, Pivot points, SMA, pivot low
Where it was published	TradingView, by its author, as a Pine Script strategy
Result	no finished try; every run errored or timed out
Page updated	2026-11-08

EMA and Dow Theory Strategies V4.1 backtest results, every cell

There is no cloud of cells to draw. The frame below says why.

How EMA and Dow Theory Strategies V4.1 works

Rules in this group usually work like this. It buys when price pokes above a recent high, and it bets on a fall when price pokes under a recent low. It is wrong often. It pays for those false starts with the few times price keeps going. How far back it looks decides how many pokes it takes. The next paragraph is this particular rule, which can be narrower than the group.

It can buy, and it can bet on falling prices. It acts only when several checks agree at once. It leans on ATR, DMI, EMA, pivot high; 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 3 percent of the account. It holds one trade at a time.

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 no long position is open and the 58-period EMA of the close is above the previous 58-period EMA of the close and trend equals 1 and ADX is above ADX Threshold (ADXしきい値) (20.5) and no position is open.
• Enters short when no short position is open and the 58-period EMA of the close is below the previous 58-period EMA of the close and trend equals −1 and ADX is above ADX Threshold (ADXしきい値) (20.5) and no position is open.
• Closes the position when (((the close − strategy.opentrades.entry price(strategy) / strategy.opentrades.entry price(strategy) × 100) is below Stop Loss % (損切り%) (-5) and a long position is open.
• Closes the position when (((the close − strategy.opentrades.entry price(strategy) / strategy.opentrades.entry price(strategy) × 100) is below Stop Loss % (損切り%) (-5) and a short position is open.
• Closes the position when Enable BE Stop (BEストップを有効にする) (on) and be activated and a long position is open and the low is at or below undefined.
• Closes the position when Enable BE Stop (BEストップを有効にする) (on) and be activated and not (a long position is open and the low is at or below undefined) and a short position is open and the high is at or above undefined.

Buys or sells	It can buy, and it can bet on falling prices.
Tools it calculates	ADX / DMI, ATR, Donchian Channels, EMA, Pivot points, SMA, pivot low
A second chart speed	Yes. It also looks at a second chart speed.
Only at certain hours	No.
Adding to a trade	It holds one trade at a time.
How much it trades	Each trade uses 3 percent of the account.
Cost the author assumed	The author assumed a trading cost of 0.055 percent per side.

Default settings

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

Setting	Default	Group
日本語表示 / Japanese	on	[ LANGUAGE ]
EMA Period (EMA期間)	58	[ SETTINGS ]
ATR Factor - TP Distance (ATR倍率・TP距離)	3.8	[ SETTINGS ]
Stop Loss % (損切り%)	-5	[ SETTINGS ]
ADX Threshold (ADXしきい値)	20.5	[ SETTINGS ]
Swing Length (スイング検出期間)	13	[ SETTINGS ]
Enable BE Stop (BEストップを有効にする)	on	[ BREAK EVEN STOP ]
BE Trigger % (BE発動しきい値%)	9	[ BREAK EVEN STOP ]
EMA Line (EMAライン)	on	[ DISPLAY ]
Dow Zone / ダウゾーン	on	[ DISPLAY ]
Swing Line / スイングライン	on	[ DISPLAY ]
TP Lines / TPライン	on	[ DISPLAY ]
BE Stop Line / BEストップライン	on	[ DISPLAY ]
Higher TF Swing / 上位足スイング	on	[ DISPLAY ]
Trade Labels / トレードラベル	on	[ DISPLAY ]
Background / 背景色	on	[ DISPLAY ]
Status Table / ステータステーブル	on	[ DISPLAY ]
Table Position / テーブル位置	Top Right / 右上	[ DISPLAY ]

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.

It was one of the over 600 rules in the screen, but every try errored or timed out, so it has no result. That is a problem running this script, not a finding about the market.

How to read the result

How to read the number

There is no finished result on this page. A try that did not finish is not a finding about the market.

What this does not show

The useful question is what the false starts cost. Count the trades, not the one that kept going.

There is no cell to single out, and this note does not invent one. Other years, another exchange, or another fee would be a different measurement.

Questions about EMA and Dow Theory Strategies V4.1

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 and Dow Theory Strategies V4.1 uses

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

• ADX and the directional movement index: how strong the trend is, not which way
• ATR (average true range): the volatility number behind most stops
• Donchian Channels: the highest high and lowest low, and the breakout rule they define
• Exponential moving average (EMA): what it measures and where it misleads
• Pivot points: swing pivots and floor-trader pivots, two different things with one name
• Simple moving average (SMA): the plainest average, and why it still runs half the strategies

"EMA and Dow Theory Strategies V4.1" 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.