Risk Parity Hedge

Conservative trend entry that only fires when EMA crosses up while Bollinger Band width signals low volatility.

By STLab · Published 2026-06-11 · CC-BY-SA-4.0

Reliability

Read with caution — from 10 trades, fewer than the 30 a result needs to mean much.

Backtest result

Return+12.7%
Sharpe0.31
Max drawdown5.8%
Profit factor2.02
Win rate40.0%
Trades10

Run on AAPL 1h · 6m · 853 bars · data from yahoo. Frozen at publish time, captured 2026-07-15.

Strategy rules

{
  "exit": {
    "logic": "AND",
    "conditions": [
      {
        "value": 0,
        "params": {
          "period": 12
        },
        "operator": "crosses_below",
        "indicator": "EMA",
        "compareParams": {
          "period": 26
        },
        "compareIndicator": "EMA"
      }
    ]
  },
  "name": "Risk Parity Hedge",
  "risk": {
    "stopLoss": 2,
    "takeProfit": 6,
    "positionSize": 100
  },
  "entry": {
    "side": "long",
    "logic": "AND",
    "conditions": [
      {
        "value": 0,
        "params": {
          "period": 12
        },
        "operator": "crosses_above",
        "indicator": "EMA",
        "compareParams": {
          "period": 26
        },
        "compareIndicator": "EMA"
      },
      {
        "value": 0,
        "params": {},
        "operator": "<",
        "indicator": "PRICE",
        "compareParams": {
          "period": 20,
          "stdDev": 2
        },
        "compareSubField": "upper",
        "compareIndicator": "BB"
      }
    ]
  },
  "source": "preset",
  "version": "1.0"
}

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