EMA and RSI Trend Entries with Percentage Exits and Drawdown Control
Summary
This long-only trend strategy enters when price is above a 200-period EMA and RSI exceeds its threshold. It exits when price falls below the EMA or RSI drops below the threshold, with percentage-based stop-loss and take-profit orders also specified. A separate equity-based control tracks the account’s peak value and closes all positions when the stated drawdown limit is breached. Position sizing is described as a percentage of equity in the overview, though the source does not set that sizing method explicitly.
The document provides a BTC/USDT futures backtest configuration covering one month, but offers no performance statistics. Its listed risks include lag during reversals, false signals in sideways markets, sensitivity to parameter choices, and slippage around stop and limit orders. The drawdown mechanism acts on strategy equity, and its outcome depends on the backtest or live execution model; it does not guarantee a maximum realized loss. Suggested extensions include volatility filters, adaptive parameters, volume confirmation, and multi-timeframe signals, without evidence that these improve results.
Key ideas
- Long entries require price above the EMA and RSI above its threshold.
- The strategy exits on a trend or momentum reversal and also sets percentage stop and target levels.
- A peak-equity drawdown threshold triggers a close-all instruction.
- The backtest configuration is given without performance results, and the equity-based control does not guarantee a loss cap.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.