EMA and Dow Theory Strategies

EMA and Dow Theory Strategies at a glance

Kind of rule	A gauge with a line (momentum oscillator)
Buys or sells	It can buy, and it can bet on falling prices.
Built on	Donchian Channels, EMA, Pivot points, RSI, SMA, pivot low
Where it was published	TradingView, by its author, as a Pine Script strategy
Tested on	12 cells: 12 coins, October 2021 to June 2026, no fee
Trades placed	none
Page updated	2026-11-08

EMA and Dow Theory Strategies backtest results, every cell

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

How EMA and Dow Theory Strategies works

Rules in this group usually work like this. It reads a gauge such as RSI, a number that swings between low and high, and it acts when that gauge crosses a line the author chose. Those lines are the rule. Move the lines and the result can change. 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 EMA, pivot high, pivot low, RSI; 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.

The author did not set a size, so each trade uses whatever amount the code assumes. 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 go long and dont go differs from 'LONG' and (not (wait for color change) or RSI exit count is below 2) and no position is open and trend equals 1 and the 14-period RSI of the close is below 過熱水準 (70).
• Enters short when no short position is open and go short and dont go differs from 'SHORT' and (not (wait for color change) or RSI exit count is below 2) and no position is open and trend equals −1 and the 14-period RSI of the close is above 売られすぎ水準 (30).
• Closes the position when (((the close − strategy.opentrades.entry price(strategy) / strategy.opentrades.entry price(strategy) × 100) is below 損切り (-5) and |the position size| differs from 0 and a long position is open and not ((the 47-period EMA of the close is below the 50-period EMA of the close and the 47-period EMA of the close on the period timeframe is above the 50-period EMA of the close on the period timeframe or the 47-period EMA ….
• Closes the position when (((the close − strategy.opentrades.entry price(strategy) / strategy.opentrades.entry price(strategy) × 100) is below 損切り (-5) and |the position size| differs from 0 and a short position is open and not ((the 47-period EMA of the close is at or above the 50-period EMA of the close and the 47-period EMA of the close on the period timeframe is below the 50-period EMA of the close on the period timeframe or the ….
• Closes the position when a long position is open and the previous equals and differs from and (((the close − strategy.opentrades.entry price(strategy) / strategy.opentrades.entry price(strategy) × 100) is above 0.1 and not (scaled) and not ((the 47-period EMA of the close is below the 50-period EMA of the close and the 47-period EMA of the close on the period timeframe is above the 50-period EMA of the close on the period timeframe or ….
• Closes the position when a short position is open and the previous equals and differs from and (((the close − strategy.opentrades.entry price(strategy) / strategy.opentrades.entry price(strategy) × 100) is above 0.1 and not (scaled) and not ((the 47-period EMA of the close is at or above the 50-period EMA of the close and the 47-period EMA of the close on the period timeframe is below the 50-period EMA of the close on the period ….

Buys or sells	It can buy, and it can bet on falling prices.
Tools it calculates	Donchian Channels, EMA, Pivot points, RSI, 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	The author did not set a size, so each trade uses whatever amount the code assumes.
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
Fast EMA	47	───────────────[ SETTINGS ]
Slow EMA	50	───────────────[ SETTINGS ]
Index Fast EMA	47	───────────────[ SETTINGS ]
Index Slow EMA	50	───────────────[ SETTINGS ]
損切り	-5	───────────────[ TAKE PROFIT / STOP LOSS ]
スケール調整の割合	65	───────────────[ TAKE PROFIT / STOP LOSS ]
直近トレードの損益ラベルを表示しますか？	on	───────────────[ STATS DISPLAY ]
統計テーブルの位置	Bottom Right	───────────────[ STATS DISPLAY ]
スイング検出期間	6
RSI期間	14
過熱水準	70
売られすぎ水準	30

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 12 cells, and it placed no trades.

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	12
Cells that placed a trade	0
Finished above zero	0

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

No cell took a trade, so there is no return to read. The rule above is the whole note.

What this does not show

The useful question is what happens if the author's lines are moved a little. If the result changes a lot, the result is the lines.

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

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 uses

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

• 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
• RSI (relative strength index): the formula, the 70/30 rule, and why it misleads in trends
• Simple moving average (SMA): the plainest average, and why it still runs half the strategies

"EMA and Dow Theory Strategies" 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.