Bitcoin Trend Filtering with Weekly EMA, Daily Price, RSI, and ATR Stops
Summary
This Bitcoin strategy uses a higher-timeframe EMA as a regime filter and daily price relative to that EMA to identify bullish conditions. An ATR buffer raises the threshold for confirming the regime, while an optional RSI momentum filter can require additional strength. The source implements long entries only: it enters when the bullish conditions hold and no caution signal is active. A caution flag based on recent highs, lows, and ATR pauses entries after a strong move; an ATR-based trailing stop and a close below the higher-timeframe EMA provide exits.
The document reports a BTC/USDT backtest configuration and states that the strategy uses all available equity per trade with a commission assumption, but it supplies no return, drawdown, or trade statistics. It warns that full-equity exposure can produce substantial drawdowns, ranging markets can raise trading costs, and trailing stops may trigger during volatility. The RSI filter is disabled by default, and the published code uses a weekly EMA with a daily market timeframe.
Key ideas
- A weekly EMA and daily price comparison define the bullish market regime.
- An ATR buffer and optional RSI condition add filters to the regime signal.
- A recent-move caution condition blocks new entries after a strong upward move.
- Long positions exit on a volatility-based trailing stop or a close below the higher-timeframe EMA.
- The strategy uses full account equity per trade in the stated configuration, but no performance results are provided.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.