Bitcoin EMA Momentum Signals with RSI, Range Filters, and Bracket Exits

Summary

This hourly Bitcoin strategy combines a 15-period and 30-period EMA spread with its 9-period EMA signal line. Long entries occur when the spread crosses upward while unusually low relative to its recent 100-bar range; short entries use the reverse crossing and a relatively high spread. Both directions also require price and 50-period RSI to be on the corresponding side of their own 50-period averages, with price below or above a midpoint derived from the prior 38 bars’ highs and lows. The script offers a reverse mode that swaps the trade direction of each signal.

Positions are sized using a configurable share of strategy equity and use separate percentage stop and profit levels. The notes describe default settings for a one-hour BTC chart, but provide no reported backtest results or performance evidence. The implementation’s range thresholds use the highest or lowest EMA spread multiplied by the same positive factor, which may behave unexpectedly when those values are negative. The midpoint calculations are identical, and the documented stop-loss defaults differ from the code’s input defaults. These details warrant verification before interpreting the strategy or its results.

Key ideas

• The strategy uses crossovers of a 15/30 EMA spread and its smoothed signal line to generate directional entries.
• Long and short signals require spread extremes, price and RSI filters, and price relative to a recent range midpoint.
• A reverse setting swaps the direction of the trades associated with each signal.
• Position size is based on a configurable fraction of strategy equity, with percentage stop and profit exits.
• The document gives no backtest performance evidence, and several stated settings or calculations merit validation.

Tags

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