EMA Crossover Entries Filtered by RSI Momentum

Summary

This strategy combines a fast and slow exponential moving average crossover with an RSI threshold to signal directional trades. It uses the 7-period EMA and 21-period EMA, with an 11-period RSI: a bullish crossover is eligible when RSI is above 50, while a bearish crossover requires RSI below 42. A position-state variable prevents repeated entries in the same direction, and a new opposite signal closes and reverses the current position.

The document describes chart markers and EMA plots, but supplies no performance results. Its published backtest settings specify BTC/USDT futures over roughly one year with daily bars, which does not match the overview's stated one-hour use. The source also has no explicit stop-loss, so exits depend on reverse signals. The author identifies risks from sideways-market whipsaws, parameter sensitivity, and reliance on a single timeframe, and suggests testing additional filters and risk controls.

Key ideas

• A 7-period EMA crossing above a 21-period EMA creates a long signal when the 11-period RSI exceeds 50.
• A bearish crossover creates a short signal only when RSI is below 42.
• Position tracking avoids repeating same-direction entries, while opposite signals reverse exposure.
• The implementation lacks a defined stop-loss and may whipsaw in ranging markets.
• The published daily-bar backtest settings differ from the strategy's stated one-hour timeframe.

Tags

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