SPY 5 EMA Reversal

The 5 EMA mean-reversion setup on SPY shares (NASDAQ-EQ). Short side on 5-minute bars: an alert candle that closes entirely above the 5 EMA (its low above the EMA); a break of the alert low in the next candle sells SPY short, stop at the alert high, target 3R. Long side on 15-minute bars: an alert candle entirely below the 5 EMA (its high below the EMA); a break of the alert high buys SPY, stop at the alert low, target 3R. One position at a time and one trade per alert candle, flat by 15:55 ET. Size = $200 risk per multiplier divided by the alert-candle range (the stop distance), capped at $25,000 notional per multiplier. Capital per multiplier: $25,000. Short selling and same-day round trips need a margin account, and US brokers require $25,000 minimum equity for pattern day trading; that also covers the $25,000 notional cap in full. Times are New York time; the backtest uses New York time in every season. Live, Tradetron's US clock is a fixed UTC-4: it matches New York from mid-March to early November and runs one hour ahead of it in winter, so in winter each time rule fires one hour earlier in the session. Educational template: not investment advice.

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