DEMA and TEMA Crossover Strategy for Crypto Trend Tracking

Summary

This document describes a trend following method that compares a Double Exponential Moving Average (DEMA) with a Triple Exponential Moving Average (TEMA). A TEMA cross above DEMA signals a long entry, while a cross below signals a short entry. The notes explain how each average is calculated and say that a delay parameter is intended to require a signal to persist before entry. They also describe checking for an opposite position before opening a new one. The listed parameters are moving average lengths of 230 and 210 and a delay of five bars.

The document gives no performance results. Its published backtest settings identify BTC/USDT futures on Binance, using daily bars with a one hour base period, over the stated 2022–2023 dates. However, the included strategy source enters on crossover signals directly, without applying the described delay; its last trade bar variable is recorded but not used to gate entries. The notes warn that repeated crosses can cause losses in sideways markets and that trend-only signals may respond poorly to abrupt reversals. They suggest testing parameters and adding risk filters, but provide no validation that these changes improve results.

Key ideas

• DEMA and TEMA are compared to generate long and short crossover signals.
• The stated entry delay is intended to wait for a crossover to persist before trading.
• The published source does not implement the described delay condition.
• Sideways markets can produce repeated false signals, and abrupt events may trigger losses.
• The document supplies backtest settings but reports no performance measurements.

Tags

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