Steven Hart (The Trading Channel)

Steven Hart (The Trading Channel)

50 EMA pullback with engulfing entry

RECOMMENDED 1H · 4H Channel

Win rate

52.2%

Trades

186

Profit factor

1.00

profit > loss

Return

+0.4%

under hold +1134.0%

Drawdown

15.1%

Account curve

BTCUSDT · 4H2018-09-212026-09-19 · 8.0 years

StrategyBuy & hold

Wins and losses

52%win rate
  • Wins97
  • Losses89
Drawdown15%
Hold drawdown75%
Time in market27%

How it trades

  1. 1

    Timeframe

    1H · 4H

  2. 2

    Setup / filter

    close > EMA(50) AND the candle low touches or crosses below EMA(50) AND previous candle is bearish

  3. 3

    Entry

    the signal candle is a bullish reversal candle (bullish engulfing, or a hammer with a lower wick at least twice its body and the close in the top third) → market at the next candle open

  4. 4

    Stop

    lowest low of the 5 completed candles before the signal candle minus 1 × ATR(14)

  5. 5

    Target / exit

    Target: 1R (R = entry-to-stop distance)

  6. 6

    Risk

    1% of equity risked to the stop

Evidence

6
Rules executed
2
Published sources
4
Known limits

What this test cannot reproduce

These are the free third-party codification of his pullback rules (Zen & The Art of Trading), not his paid course; the exact thresholds tested are stated above.

Long side only: the mirror short setup cannot be executed on Spot.

He selects targets discretionarily at structure; a fixed 1R target is used instead.

"At least two bearish candles" is applied as the single candle before the entry candle being bearish, which is what the engine can read without look-ahead.