Combining Dual EMAs with a Range Filter for Directional Entries

Summary

The document reconstructs a TradingView strategy that combines a fast and slow exponential moving average with buy and sell signals from a range filter indicator. A long entry requires a bullish range-filter signal, the fast EMA above the slow EMA, and a bullish candle closing above the fast EMA. The short rules mirror these conditions. Entries are allowed only while flat, and exits use a fixed-distance stop plus a trailing take-profit mechanism.

The author backtests the design on ETH and BTC perpetual contracts using 15-minute bars over a stated period in 2022, with EMA periods taken from the source video and stop and trailing values selected by the author. Results are described qualitatively as mixed on ETH and very strong on BTC, while the author acknowledges sensitivity to exit settings and says the results do not establish live performance. No detailed metrics, costs, robustness checks, or independent validation are supplied, so the reported outcomes should be treated as preliminary.

Key ideas

• The fast and slow EMAs define the broader directional bias for entries.
• A range-filter reversal signal must align with candle direction and the fast EMA for an entry.
• The strategy uses a fixed stop and trailing exit whose settings are chosen by the author.
• Reported backtests cover ETH and BTC perpetual contracts on 15-minute bars in 2022.
• The document describes uneven results and cautions that backtests do not demonstrate live effectiveness.

Tags

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