EMA and SuperTrend Trend-Following Entry and Exit Rules
Summary
This strategy combines SuperTrend, which uses ATR to track directional changes, with an EMA filter. It enters long when price crosses above the SuperTrend line while above the EMA, and enters short when price crosses below the line while below the EMA. Positions close when price crosses the SuperTrend in the opposite direction or moves across the EMA against the trade. The document also describes color-coded bars as a visual trend aid.
The parameters shown include a SuperTrend length of 10, a multiplier of 2, and an EMA length of 34. The published backtest settings specify BTC-USDT futures on Binance over roughly a year, but provide no performance results, so they do not establish profitability. The document warns that confirmation can delay or miss entries, false breakouts remain possible, and results depend on parameter choices. It suggests testing additional filters and higher-timeframe confirmation.
Key ideas
- Long entries require price above the EMA and a cross above the SuperTrend line.
- Short entries require price below the EMA and a cross below the SuperTrend line.
- Positions close when price crosses the SuperTrend or EMA against the trade.
- The document gives backtest settings but reports no performance results.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.