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A Bitcoin Multi-Factor Trend Strategy with TEMA, Supertrend, and Heikin-Ashi

Article Strategy library · Author: ChaoZhang
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Summary

This BTC-oriented strategy combines three TEMA lines, a Supertrend direction filter, a moving average of the short TEMA, and Heikin-Ashi close confirmation. It opens a long when the short TEMA is above both longer lines, Supertrend is bullish, the short TEMA is above its SMA, and Heikin-Ashi close is rising; the short rule reverses those conditions. The described exits use a 1% take-profit and a 3% stop-loss, and the published settings include commission.

The document provides indicator parameters and a short BTC/USDT futures backtest window, but gives no return, drawdown, or trade statistics. It therefore offers a rule set rather than evidence that the approach is profitable or stable. The source’s date-filter setting does not appear to be applied to entries, and the prose mentions ATR in the signal framework even though ATR mainly feeds Supertrend. Short timeframes, numerous tunable parameters, omitted slippage, and untested market regimes all limit conclusions; broader validation is needed.

Key ideas

  • Long and short signals require agreement among TEMA alignment, Supertrend direction, short-TEMA smoothing, and Heikin-Ashi movement.
  • The three TEMA lines use configurable lengths and price sources.
  • The described exits place a take-profit at 1% and a stop-loss at 3% from entry.
  • The published BTC futures setup includes commission but reports no performance statistics.
  • Many parameters and short-horizon trading create robustness and transaction-cost concerns.

Tags

CryptoFuturesTrend followingTechnical indicatorsRisk managementBacktesting

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.