Double EMA Crossovers Filtered by the ALMA Trend Line

Summary

The described approach combines two exponential moving averages with an Arnaud Legoux Moving Average (ALMA). A crossover between the faster and slower EMA supplies a potential directional signal, while price relative to ALMA acts as a trend filter: long entries require price above ALMA and short entries require price below it. The listed defaults are EMA lengths of 5 and 10 and ALMA settings of a 50-period window, 0.85 offset, and 6 sigma. The notes recommend parameter exploration and suggest adding volatility filters or stop-loss rules.

The document gives a BTC/USDT futures backtest configuration with daily strategy bars and hourly base data over a stated interval, but reports no performance evidence. It warns that EMA signals can be false during sharp moves and that ALMA can lag, filtering out some price moves. There is also a mismatch between the prose and the provided source: the source's entry conditions do not clearly implement an EMA crossover, and they compare EMA values with ALMA rather than explicitly requiring price to be on the corresponding side. That discrepancy limits confidence in the stated rules without further verification.

Key ideas

• EMA crossovers are presented as early directional signals, with ALMA serving as a trend filter.
• The stated rules require price above ALMA for longs and below ALMA for shorts.
• The default configuration uses 5- and 10-period EMAs and a 50-period ALMA window.
• The document provides a BTC/USDT futures backtest setup but no performance statistics.
• The source conditions do not clearly match the described crossover and price-filter logic.

Tags

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