If I used this, I think I would use the crossing back of the two smaller MA's to take profit and get out.
That is actually the complement strategy i am using. When the price go down below ema 12, then turn back above It i use as another entry point.
As the SL, i use the ema 24 as base, plus some space added (wich is defined by backtrack test, wich i also do with the TP)
This strategy is the one i used as a First try as writting a bot, and even though the back had good profits, the drawdown is too big (i Will post some backtests also). I Will run some more tests this week with the SL fixed at the ema 24, and shorter TP.
Because so far, this strategy for the bot has been... Underwhelming. Because like you Said, crossing averages sucks on ranging markets.
I freak out as the price get Very close to TP, and then Go all way down.
The total profit Will probably be lower, but maybe i Will have a higher % of profitable trades?
I Will post a bit more about my bot experience, as soon as i have a bit extra time.
To be honest, I've tested a lot of moving average type systems as well and been totally underwhelmed. Something I did notice though, and you probably won't believe this - try reversing the signal direction :-)
Have a look at my post on backtesting, the 'profitable' chart I showed was actually a MA cross system in reverse. That is, when the Fast MA moved under the Slow MA it bought, and when it crossed back above it sold. Exactly the opposite of what the system is meant to do, but it made money...
https://steemit.com/trading/@tradergurl/the-benefit-of-backtesting
Will be interesting to hear about your bot experience, thanks.