EMA Crossover and MACD Signals with RSI and Percentage Exits

Summary

This strategy pairs a 21-day EMA and a 100-day EMA with MACD confirmation. The description says a fast average crossing above the slow average supports a long, while a cross below supports a short; MACD crossing behavior is used to confirm or exit a long. It also describes an RSI threshold below 30 for short entries, a 1% stop relative to entry, and a long profit exit at 3%. The source’s implemented entry conditions differ in places from this account, and its exit code is commented out, so the stated risk controls are not active in the supplied source.

The document presents trend direction, momentum confirmation, and preset exits as the rationale for the approach. It also acknowledges lagging averages, false MACD signals, potentially large drawdowns, and limited participation in falling markets. Suggested changes include alternate filters, dynamic stops, shorting rules, and position sizing. A brief BTC/USDT futures backtest window is listed, but no performance evidence is provided. Treat the reported design and benefits as proposals rather than validated results.

Key ideas

• The stated trend signal uses a 21-day EMA and a 100-day EMA, with MACD as confirmation.
• The description specifies an RSI condition for short entries and percentage-based stop and profit levels.
• The source does not implement all described rules: its exit logic is commented out and some entries differ from the prose.
• The strategy may lag, produce false signals, and experience substantial drawdowns.
• The published short backtest configuration gives no performance results.

Tags

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