Combining a 20-Period EMA with Supertrend for Trend Signals

Summary

This strategy combines a 20-period exponential moving average with Supertrend, whose bands are derived from average true range. A long entry is triggered when price crosses above the EMA while Supertrend indicates an uptrend. The stated exit occurs when price crosses below the EMA while Supertrend indicates a downtrend. The EMA provides an additional directional condition, while Supertrend adjusts its bands in response to volatility.

The document provides source code, parameter defaults, and published settings for a daily Bitcoin futures backtest spanning roughly a year, but it includes no results or comparison with a benchmark. Its written discussion warns that sideways conditions can produce frequent signals and costs, and that both indicators can lag. It also notes that the implementation lacks stop-loss and position-sizing rules. Those caveats matter: the proposed entry and exit logic alone does not establish a usable risk plan or evidence of profitability.

Key ideas

• The entry logic requires an EMA crossover and a matching Supertrend direction.
• The Supertrend bands use average true range to adapt to volatility.
• The described strategy opens long positions and closes them after a matching bearish signal.
• Choppy markets may cause repeated signals and transaction costs.
• The document offers backtest settings but reports no performance results or position-sizing method.

Tags

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