EMA and RSI Momentum Strategy with Distance Filters

Summary

This strategy combines short- and longer-period exponential moving averages with RSI conditions to identify directional momentum. A long signal requires the faster EMA to be above the slower EMA in both pairs, RSI to exceed 50 and its own average, and the short EMA gap to pass a comparison with recent gaps. Stronger RSI thresholds also mark bullish or bearish states, while changes in the distance between longer and shorter EMAs are used as a persistence check.

The document describes signal rules and risks but supplies no performance results. Its published settings identify a daily BTC/USDT futures backtest spanning 2019 to 2025; that alone does not establish profitability. The source logic also differs from parts of the prose: the purported short condition is simply the long-term EMA ordering, and the rolling distance arrays are reinitialized on each bar, limiting the stated historical comparison. Sideways markets, lag, reversals, and parameter overfitting remain concerns.

Key ideas

• The strategy combines two EMA comparisons with RSI level and average conditions for directional confirmation.
• It compares the short EMA gap with a recent average to filter long entries.
• The code uses a change in the gap between the longer and shorter EMAs as a persistence condition.
• The document flags whipsaws, delayed signals, reversals, and overfitting as risks.
• The published backtest settings specify BTC/USDT futures on a daily timeframe, but no performance statistics are provided.

Tags

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