//@version=5

strategy("EMA Crossover with Dynamic Stop Loss 1:2", overlay=true, default_qty_type=strategy.cash, default_qty_value=3600)

// EMA Parameters

fastEMA1 = ta.ema(close, 5)

fastEMA2 = ta.ema(close, 13)

fastEMA3 = ta.ema(close, 21)

slowEMA = ta.ema(close, 200)

// Plot EMAs on the chart

plot(fastEMA1, color=color.green, title="EMA 5")

plot(fastEMA2, color=color.orange, title="EMA 13")

plot(fastEMA3, color=color.blue, title="EMA 21")

plot(slowEMA, color=color.red, title="EMA 200")

// Detect crossover of all fast EMAs with the slow EMA within the last 10 candles

bullishCrossover = ta.barssince(ta.crossover(fastEMA1, slowEMA)) <= 10 and ta.barssince(ta.crossover(fastEMA2, slowEMA)) <= 10 and ta.barssince(ta.crossover(fastEMA3, slowEMA)) <= 10

bearishCrossover = ta.barssince(ta.crossunder(fastEMA1, slowEMA)) <= 10 and ta.barssince(ta.crossunder(fastEMA2, slowEMA)) <= 10 and ta.barssince(ta.crossunder(fastEMA3, slowEMA)) <= 10

// Position sizing and risk management

capitalPerTrade = 60

leverage = 30

positionSize = capitalPerTrade * leverage

var float maxLoss = 30 // Maximum loss in dollars

var float riskRewardRatio = 3 // Risk-reward ratio (3:1)

// Calculate stop loss and take profit percentages

var float stopLossPercent = maxLoss / positionSize

var float takeProfitPercent = riskRewardRatio * stopLossPercent

// Track trade status

var float activeStopLoss = na

var float activeTakeProfit = na

var float entryPrice = na

// Time settings (New York timezone)

newYorkTime = timestamp("America/New_York", year, month, dayofmonth, hour, minute)

// Backtesting date range (last 6 months)

fromDate = timestamp("America/New_York", 2024, 2, 28, 0, 0)

toDate = timestamp("America/New_York", 2025, 3, 5, 0, 0)

isInDateRange = (time >= fromDate) and (time <= toDate)

// Restrict trading during weekends and outside market hours

isWeekday = dayofweek != dayofweek.saturday and dayofweek != dayofweek.sunday

// Detect New York market hours (winter/summer time)

utcHour = hour(time)

isMarketOpen = (utcHour >= 14 and utcHour < 22) or (utcHour >= 13 and utcHour < 22)

var int tradeHour = na

// Prevent consecutive rapid trades

lastLongEntry = ta.barssince(strategy.position_size > 0)

lastShortEntry = ta.barssince(strategy.position_size < 0)

canTrade = lastLongEntry > 10 and lastShortEntry > 10

// Execute trades only during valid date range, market hours, and weekdays

buy_entry = false
sell_entry = false

if bullishCrossover and isInDateRange and isWeekday and isMarketOpen
    strategy.entry("Buy", strategy.long)
    entryPrice := close
    activeStopLoss := entryPrice * (1 - stopLossPercent)
    activeTakeProfit := entryPrice * (1 + takeProfitPercent)
    buy_entry := true

if bearishCrossover and isInDateRange and isWeekday and isMarketOpen
    strategy.entry("Sell", strategy.short)
    entryPrice := close
    activeTakeProfit := entryPrice * (1 - takeProfitPercent)
    activeStopLoss := entryPrice * (1 + stopLossPercent)
    sell_entry := true

// Adjust stop loss when reaching 1:1 risk-reward ratio

bool buy_exit = na
bool sell_exit = na
if strategy.position_size > 0
    if close >= entryPrice * (1 + stopLossPercent * 2)
        activeStopLoss := entryPrice * (1 + stopLossPercent)
    if close >= entryPrice * (1 + stopLossPercent)
        activeStopLoss := entryPrice
        strategy.exit("TP/SL", "Buy", stop=activeStopLoss, limit=activeTakeProfit)
        buy_exit := true

if strategy.position_size < 0
    if close <= entryPrice * (1 - stopLossPercent * 3)
        activeStopLoss := entryPrice * (1 - stopLossPercent * 2)
    if close <= entryPrice * (1 - stopLossPercent * 3.5)
        activeStopLoss := entryPrice * (1 - stopLossPercent * 3)
        strategy.exit("TP/SL", "Sell", stop=activeStopLoss, limit=activeTakeProfit)
        sell_exit := true


plotshape(buy_entry, "Buy Entry", color=color.green, style=shape.circle, size=size.tiny, location=location.belowbar)
plotshape(sell_entry, "Sell Entry", color=color.purple, style=shape.circle, size=size.tiny, location=location.abovebar)
plotshape(buy_exit, "Buy Exit", color=color.red, style=shape.circle, size=size.tiny, location=location.abovebar)
plotshape(sell_entry, "Sell Exit", color=color.lime, style=shape.circle, size=size.tiny, location=location.belowbar)