Dual EMA Crossover Strategy with Trend and Equity Filters
Summary
The strategy uses EMA crossovers to set long and short direction, with additional conditions intended to filter signals. Its description identifies 9-, 21-, and 50-period EMAs, though the source uses the 21- and 50-period pair for the crossover. Optional checks compare recent price movement and strategy equity with an equity average. Exits use percentage-based take-profit and stop-loss levels, and opposite crossover signals can close positions.
The published parameters include a 200-bar range lookback and percentage exit settings; the BTC/USDT futures backtest configuration spans about one month in 2023. No performance results are supplied, so the configuration is not evidence of reliable returns. The document also contains conflicting claims about whether a stop-loss is present: the strategy source defines one, while the risk discussion says it is absent. It warns that crossovers can whipsaw in consolidation, arrive after much of a move has occurred, and lose effectiveness after trading costs and slippage.
Key ideas
- EMA crossovers provide the trend-following entry and reversal signals.
- Optional price-range and equity-average filters can suppress some trades.
- Percentage-based take-profit and stop-loss levels define position exits.
- The source uses the 21- and 50-period EMA crossover despite describing three EMA periods.
- The short published backtest configuration includes no reported performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.