Adaptive EMA-RSI Trading with Choppiness Regime Filters

Summary

This strategy switches between trend and range trading based on the Choppiness Index (CI). In trending conditions, it uses 9- and 21-period EMA crossovers, filtered by RSI thresholds; in ranging conditions, it enters against extreme RSI readings. CI values below 38.2 indicate trend conditions, while values above 61.8 indicate range conditions. The system describes exits when signals weaken or reverse and uses a 2% stop loss and 4% take profit.

The document claims a 70–80% win rate on a 15-minute timeframe, but gives no underlying trade results, sample size, or performance metrics to assess that claim. The published backtest configuration instead specifies BTC/USDT futures on a 45-minute period over a one-week window. The strategy’s own caveats include parameter sensitivity, false signals during regime changes, slippage in thin markets, and overtrading from frequent state shifts. Its suggested improvements include more careful regime handling and dynamic risk controls.

Key ideas

• The Choppiness Index selects trend or range trading logic using separate thresholds.
• EMA crossovers with RSI filters generate entries in trending conditions.
• In range conditions, RSI extremes trigger entries that anticipate a return from overbought or oversold levels.
• The stated exits include signal-based closures plus a 2% stop loss and 4% take profit.
• The document reports a win-rate claim without enough supporting backtest evidence to evaluate it.

Tags

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