Bitcoin Long-Only Momentum Entries with EMA, ROC, and ADX Filters

Summary

This is a long-only Bitcoin strategy described for a four-hour chart. It requires price to be above a long-term exponential moving average and that average to be rising, while rate of change exceeds a threshold and ADX indicates sufficient trend strength. A new entry is allowed only when the strategy has no open position. The script sets a protective stop at the recent swing low and a profit target at a multiple of the distance from entry to that stop.

The provided settings include adjustable lookbacks and thresholds, and the strategy declaration specifies commission and slippage assumptions. The document explains the intended filters and includes source code, but gives no backtest results or evidence that the chosen parameters are profitable. The swing-low stop, target calculation, and signal behavior may vary with chart data and execution assumptions, so they require independent evaluation before practical use.

Key ideas

• A long entry requires price above a rising long-term EMA, positive ROC beyond its threshold, and ADX above its threshold.
• The strategy avoids opening another position while one is already active.
• The stop is placed at the recent swing low, with a profit target based on a configurable reward-to-risk multiple.
• The settings and the modeled commission and slippage are specified, but no performance results are reported.

Tags

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