BTC Trend Engine Using EMA Alignment, Momentum, and Volatility Filters

Summary

This excerpt outlines a long-only Bitcoin strategy intended for a four-hour chart. It combines smoothed fast, medium, and slow exponential moving averages with slope and separation checks to identify an upward trend. Additional filters measure directional path efficiency, the persistence of rising closes, recent momentum, and current average true range relative to its baseline. A recent-high breakout test is also being set up when the excerpt ends.

The visible risk settings include leverage, a percentage hard stop, an ATR-based trailing stop, and a profit-lock distance. The script also blocks entries on weekends and after a Friday afternoon cutoff in New York time, with a forced Friday close. However, the supplied source stops partway through the breakout condition, so the final entry score, complete entry and exit rules, and actual order sizing cannot be determined. No performance results are included; the parameter values alone do not establish profitability or risk-adjusted performance.

Key ideas

• The strategy seeks long positions when several smoothed moving averages and their slopes indicate an upward trend.
• Path efficiency, rising-close persistence, momentum, volatility, and breakout strength are intended to qualify the trend.
• The visible risk controls include a hard stop, ATR-based trailing stop, and profit-lock setting.
• Weekend and late-Friday rules restrict entries and close open positions.
• The excerpt is incomplete, so its final signal logic and performance cannot be assessed.

Tags

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