CMF Velocity Zero Crossovers with a 200-Period EMA Filter

Summary

This strategy combines the velocity of Chaikin Money Flow with a long-term exponential moving average. CMF velocity is calculated from changes in the money-flow measure and smoothed; crossing above zero signals a long entry, while crossing below zero signals a short entry. Trades are allowed only in the direction indicated by price relative to the 200-period EMA: long above it and short below it. Stops are set at two ATR, and targets are set at twice the stop distance, giving a stated 2:1 target-to-risk ratio.

The document says the approach is intended for strongly trending markets and warns that its indicators may lag, making entry timing imperfect. It provides configurable periods for CMF, velocity, ATR, and EMA, as well as BTC/USDT futures backtest settings. Those settings cover a stated period, but no performance statistics are supplied; the parameter block’s separate date values also differ from the published backtest dates. The described rules therefore define a testable system without establishing that it produces steady gains.

Key ideas

• CMF velocity crossing above or below zero supplies long or short entry signals.
• A 200-period EMA filter permits trades only in the direction of price relative to the average.
• The stop distance is two ATR, and the profit target is twice that distance.
• The document says the method suits clear trends and flags lagging signals as a timing limitation.
• Backtest settings are provided, 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.