Dual EMA Trend Strategy with RSI and Relative Strength Confirmation

Summary

This strategy combines a 13-period and 21-period exponential moving average with RSI and relative strength versus a benchmark. Long entries are described as requiring an upward EMA relationship or price above the shorter EMA, RSI above 60, and positive relative strength. Exit conditions include price falling below the longer EMA, RSI dropping below 50, or relative strength turning negative. Re-entry rules use a price move back above the shorter EMA with the EMAs aligned, or a break above the prior week's high.

The document presents this as a trend and strength filter, with a risk reference based on a 52-week high. It cautions that choppy markets can cause frequent trades, indicators can lag, and benchmark choice affects relative strength. Although backtest settings are listed for a daily BTC/USDT futures series, no performance statistics are supplied. The accompanying code and prose also differ in some condition details, so the exact implementation should be checked before evaluation.

Key ideas

• The method combines EMA direction, RSI thresholds, and relative strength against a benchmark.
• Exit rules respond to a price break, weaker RSI, or negative relative strength.
• Re-entry can follow renewed alignment or a break above the prior week's high.
• A 52-week high is mentioned as a risk reference, though the code does not apply it as an active stop.
• The listed backtest settings provide no performance results, and the code differs from parts of the written description.

Tags

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