Dynamic Moving Average Crossover Trend Following Strategy

/*backtest
start: 2025-02-17 17:00:00
end: 2025-02-20 00:00:00
period: 1m
basePeriod: 1m
exchanges: [{"eid":"Binance","currency":"SOL_USDT"}]
*/

//@version=5
strategy("Trading strategy (customEMA/SMAParameters)", overlay=true, initial_capital=100000, currency=currency.EUR, default_qty_type=strategy.percent_of_equity, default_qty_value=10)

// Input parameters: adjustable SMA and EMA timeframe
smaLength     = input.int(120, "SMA Length", minval=1, step=1)
emaFastPeriod = input.int(13, "EMA Fast Period", minval=1, step=1)
emaSlowPeriod = input.int(21, "EMA Slow Period", minval=1, step=1)

// Calculate moving average
smaVal   = ta.sma(close, smaLength)
emaFast  = ta.ema(close, emaFastPeriod)
emaSlow  = ta.ema(close, emaSlowPeriod)

// Draw moving average
plot(smaVal, color=color.orange, title="SMA")
plot(emaFast, color=color.blue, title="EMA Fast")
plot(emaSlow, color=color.red, title="EMA Slow")

// Entry Conditions - go long
// condition1:Closing price higher thanSMA and EMA Fast Cross upward EMA Slow
longTrigger1 = (close > smaVal) and ta.crossover(emaFast, emaSlow)
// condition2:Closing price crosses aboveSMA Forward5RootKThe lowest price of the <<#1#>> line is higher than each of itsSMA
longTrigger2 = ta.crossover(close, smaVal) and (low[1] > smaVal[1] and low[2] > smaVal[2] and low[3] > smaVal[3] and low[4] > smaVal[4] and low[5] > smaVal[5])
longCondition = longTrigger1 or longTrigger2

// Entry Conditions - go short
// condition1:Closing price lower thanSMA and EMA Fast Downward Breakthrough EMA Slow
shortTrigger1 = (close < smaVal) and ta.crossunder(emaFast, emaSlow)
// condition2:Closing price crosses belowSMA Forward5RootKThe highest price of the <<#2#>> line is lower than each of itsSMA
shortTrigger2 = ta.crossunder(close, smaVal) and (high[1] < smaVal[1] and high[2] < smaVal[2] and high[3] < smaVal[3] and high[4] < smaVal[4] and high[5] < smaVal[5])
shortCondition = shortTrigger1 or shortTrigger2

// Define variables to record the entry price andEMA FastValue used to calculate stop loss
var float entryPriceLong      = na
var float entryEMA_Fast_Long   = na
var float entryPriceShort     = na
var float entryEMA_Fast_Short = na

// Entry and initial take profit and stop loss settings - go long
// Take stop loss"At Opening PositionEMA FastPrice"and"0.2%stop loss"The larger one among them; the take profit is a multiple of the stop loss5times
if (longCondition and strategy.position_size == 0)
    entryPriceLong      := close
    entryEMA_Fast_Long  := emaFast
    strategy.entry("Long", strategy.long)
    stopPercLong = math.max(0.002, (entryPriceLong - entryEMA_Fast_Long) / entryPriceLong)
    stopLong     = entryPriceLong * (1 - stopPercLong)
    tpLong       = entryPriceLong * (1 + 5 * stopPercLong)
    strategy.exit("LongExit", "Long", stop=stopLong, limit=tpLong)

// Entry and initial take profit and stop loss settings - go short
// Take stop loss"At Opening PositionEMA FastPrice"and"0.2%stop loss"The larger one among them; the take profit is a multiple of the stop loss5times
if (shortCondition and strategy.position_size == 0)
    entryPriceShort      := close
    entryEMA_Fast_Short  := emaFast
    strategy.entry("Short", strategy.short)
    stopPercShort = math.max(0.002, (entryEMA_Fast_Short - entryPriceShort) / entryPriceShort)
    stopShort     = entryPriceShort * (1 + stopPercShort)
    tpShort       = entryPriceShort * (1 - 5 * stopPercShort)
    strategy.exit("ShortExit", "Short", stop=stopShort, limit=tpShort)

// Trailing stop logic
// When position profit reaches0.8%Update stop loss and take profit, and keep take profit and stop loss.5times
var float longHighest = na
if (strategy.position_size > 0)
    longHighest := na(longHighest) ? high : math.max(longHighest, high)
    if (high >= entryPriceLong * 1.008)
        newLongStop = longHighest * (1 - 0.003)
        newPerc     = (entryPriceLong - newLongStop) / entryPriceLong
        newLongTP   = entryPriceLong * (1 + 5 * newPerc)
        strategy.exit("LongExit", "Long", stop=newLongStop, limit=newLongTP)
else
    longHighest := na

var float shortLowest = na
if (strategy.position_size < 0)
    shortLowest := na(shortLowest) ? low : math.min(shortLowest, low)
    if (low <= entryPriceShort * 0.992)
        newShortStop  = shortLowest * (1 + 0.003)
        newPercShort  = (newShortStop - entryPriceShort) / entryPriceShort
        newShortTP    = entryPriceShort * (1 - 5 * newPercShort)
        strategy.exit("ShortExit", "Short", stop=newShortStop, limit=newShortTP)
else
    shortLowest := na

// Additional closing conditions
// If holding a long positionEMA FastBreak belowEMA Slow,Then immediately close long
if (strategy.position_size > 0 and ta.crossunder(emaFast, emaSlow))
    strategy.close("Long", comment="EMABreak Below Flat Long")
// If holding a short positionEMA FastBreak aboveEMA Slow,Then immediately close short
if (strategy.position_size < 0 and ta.crossover(emaFast, emaSlow))
    strategy.close("Short", comment="EMABreak Above Flat Short")