Dual EMA Crossover with RSI Confirmation and Rule-Based Exits

Summary

This strategy pairs a 9-period EMA with a 21-period EMA and uses RSI as a confirmation filter. A bullish crossover with RSI above 30 triggers a long entry; a bearish crossover with RSI below 30 triggers a short entry. The described exits close longs when the averages cross down or RSI falls below 30, and close shorts when they cross up or RSI rises above 30.

The document includes ETH/USDT futures backtest settings and source logic, but gives no performance results. It characterizes the approach as a simple way to combine trend and momentum signals, while noting that moving-average lag and sideways markets can lead to late entries and repeated false signals. The fixed RSI threshold may not suit all markets, and the described rules lack a stop-loss and position-sizing framework. Suggested additions include volatility or volume filters, adaptive thresholds, multi-timeframe checks, and risk-based sizing.

Key ideas

• A 9-period EMA crossing a 21-period EMA provides the directional signal.
• RSI above 30 confirms long entries, while RSI below 30 confirms short entries.
• Long and short positions have exit rules based on the EMA cross and RSI threshold.
• The document identifies sideways-market whipsaws, lag, fixed thresholds, and missing risk controls as limitations.
• Backtest settings are provided, but no performance metrics are reported.

Tags

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