Double EMA Trend Strategy with Growth Thresholds

Summary

This strategy uses two smoothed exponential moving averages to identify directional moves. It compares a 10-period EMA with a 21-period EMA, then enters long when the faster line is above the slower line and a normalized growth measure exceeds a positive threshold. It closes the long when the faster line falls below the slower one and the measure passes a negative threshold. The document describes only long entries and exits, despite referring broadly to buy and sell signals.

The published settings describe a BTC/USDT futures backtest on daily bars with hourly base data, covering roughly one year. No performance results are reported, so the setup does not establish profitability. The document identifies lagging crossovers and sensitivity to parameter choices as limitations, and suggests combining indicators, adding stops, and retuning periods. Although the overview mentions loss control, it does not specify a stop-loss rule; the source code also smooths the close twice for each EMA line, a detail that may affect the signals.

Key ideas

• The faster EMA is set to 10 periods and the slower EMA to 21.
• Long entry requires the faster EMA to exceed the slower EMA and the growth measure to clear a positive threshold.
• The strategy closes a long position when the EMA ordering reverses and growth falls past a negative threshold.
• EMA lag can delay entries and exits, while parameter choices may produce too many or too few signals.
• The published BTC/USDT futures test settings include no reported performance results.

Tags

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