Adaptive DEMA Trend Signals with a Hull Moving Average Filter

Summary

The described system uses a fast and slow double exponential moving average (DEMA) pair to follow trends, with the faster line crossing above or below the slower line to indicate direction. A Hull moving average filter is intended to screen signals unless it agrees with the DEMA trend. The document presents this as a medium- to long-horizon approach that can be applied across chart intervals.

It identifies sharp trend reversals and missed opportunities from filtering as principal risks, and suggests testing alternative filters, parameter combinations, and volatility-based position sizing. Published settings show a BTC/USDT futures test over less than a month, but no returns or other performance evidence are stated. The source code also complicates the description: its timeframe mapping is fixed in practice, its moving averages use different price inputs, and its Hull calculation uses a very short length. Those implementation details make the claimed adaptation and filtering behavior uncertain; the approach requires independent inspection and testing.

Key ideas

• The strategy uses fast and slow DEMA lines to signal trend direction through crossovers.
• A Hull moving average filter is intended to confirm the direction before trading.
• Trend reversals can produce losses, while filtering can exclude profitable signals.
• The document recommends parameter testing and volatility-aware position sizing.
• The published futures test has no reported performance results, and code behavior may differ from the description.

Tags

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