Steven Hart (The Trading Channel)
50 EMA pullback with engulfing entry
A 50 EMA pullback entry confirmed by a bullish engulfing candle, with the stop under the recent 5-candle swing and a 1R target.
Win rate
51.6%
Share of trades that closed in profit
Trades
184
Completed trades in the test
Profit factor
0.99
Above 1 means profit beat loss
Return
-1.5%
Account change over the window · buy & hold 980.1%
Max drawdown
15.1%
Worst fall from a peak
Step by step, exactly as executed
Timeframe
1H · 4H
Setup / filter
close > EMA(50) AND the candle low touches or crosses below EMA(50) AND previous candle is bearish
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
Stop
lowest low of the 5 completed candles before the signal candle minus 1 × ATR(14)
Target / exit
Target: 1R (R = entry-to-stop distance)
Risk
1% of equity risked to the stop
Executable rules
Published sources
Known limitations
The published rules, verbatim
Timeframe
1 hour or 4 hour.
Trend filter
the close is above the 50-period exponential moving average.
Setup
the candle low pulls back into the 50 EMA after at least two bearish candles.
Entry trigger
a bullish engulfing candle closes the pullback; enter at the next candle open.
Stop loss
1 ATR below the swing low (the lowest low of the last 5 candles).
Take profit
1R (a minimum 1:1 reward-to-risk is his stated floor).
Sources
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.
Portfolio — every backtest of this strategy
Each row prints the exact window it was measured on. Rows with different windows measure different market periods, so their numbers differ without contradicting each other.
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