EMA and SMA Crossovers Filtered by RSI Momentum

Summary

This strategy uses a fast EMA crossing a slower SMA to identify potential trend changes, then applies RSI conditions to filter entries. Long signals follow an upward crossover and require RSI above 60; short signals follow a downward crossover and require RSI below 50. The overview also describes price crossing an RSI-related level as confirmation, though the supplied code compares price directly with the RSI value and checks those conditions within the crossover event, leaving the confirmation logic unclear.

Positions close when an opposing moving-average crossover occurs or RSI crosses the opposite threshold. The published backtest settings specify ETH/USDT on Binance over a stated date range and three-day bars, but the document reports no performance statistics. It identifies whipsaws in sideways markets, lag from moving averages, and sensitivity to parameter choices as limitations. Suggested extensions include trend-strength filtering, adaptive parameters, explicit stops and targets, position sizing, and transaction-cost modeling.

Key ideas

• An upward EMA/SMA crossover provides the basis for a long entry, while a downward crossover provides the basis for a short entry.
• RSI thresholds filter long and short signals, with the stated levels set above 60 and below 50 respectively.
• Reverse crossovers or opposing RSI thresholds close active positions.
• The published settings describe a three-day ETH/USDT backtest, but no results are reported.
• Sideways conditions can produce whipsaws, while indicator lag and parameter sensitivity limit the approach.

Tags

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