Daily Moving Average Trends with OBV Confirmation

Summary

This long-only trend strategy combines the direction of three daily moving averages—EMA 9, WMA 20, and WMA 200—with On-Balance Volume (OBV) and its 13-period EMA. It enters when all three averages are rising and the OBV condition is met, then closes the position when either part of the combined condition fails. The supplied implementation uses percentage-of-equity sizing and includes a commission assumption, with chart markers for entries and exits.

The published backtest settings specify BTC/USDT over a five-day chart interval, but the document gives no return, drawdown, or trade statistics. Its claims therefore describe a proposed method rather than demonstrated performance. Multiple averages may lag at reversals, and the document warns about false signals in ranging markets and commission costs. There is also a mismatch in the volume rationale: the code requires OBV's EMA to be above OBV, while the prose characterizes that relationship as confirming volume support for rising prices. That condition should be checked before interpreting or reproducing the strategy.

Key ideas

• The entry filter requires three daily moving averages to be rising at the same time.
• The implementation combines the trend filter with a comparison between OBV and its 13-period EMA.
• A long position is closed as soon as either entry condition stops holding.
• The backtest settings specify BTC/USDT and a five-day chart interval, without reported performance results.
• The stated OBV interpretation does not clearly match the condition implemented in the code.

Tags

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