Dual EMA Crossover with Confirmation Filters and ATR Exits

Summary

This strategy uses a 9-period and 21-period EMA crossover to identify trend direction. It filters entries with a 5-period exit EMA and a comparison between 1-period and 4-period EMAs: long and short setups require the fast and slow lines to cross, the exit EMA to sit on the specified side of them, and the confirmation EMAs to agree. The source calculates its EMAs from opening prices, a detail that differs from common close-based implementations.

Stops are placed one ATR from the entry reference, using a five-period ATR, while the first target is six ATR away. If that target is not reached, a cross between the fast EMA and exit EMA closes the position. The document supplies BTC/USDT futures backtest settings spanning October 2022 to April 2023, but reports no performance results. It warns that lag, noisy short-period signals, and stop-outs during sudden moves can limit the approach; the suggested parameter and filter adjustments are unvalidated.

Key ideas

• The 9-period and 21-period EMAs define crossover direction for entries.
• A 5-period EMA and 1-versus-4-period EMA comparison filter crossover signals.
• A five-period ATR sets a one-ATR stop and a six-ATR first profit target.
• If the first target is not reached, a fast EMA cross of the exit EMA closes the trade.
• The published BTC/USDT futures backtest settings provide no performance evidence.

Tags

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