EMA Crossover Entries with RSI Filters and ATR-Based Exits

Summary

This strategy combines 9- and 21-period EMA crossovers with RSI filters: a long entry requires RSI below 70, while a short entry requires RSI above 30. Exit distances are described as volatility-sensitive through ATR, with a take-profit distance set at four times the stop distance. The document also describes risking 1.5% of account equity per trade and using 2× leverage, and supplies configurable account, stop, target, and indicator parameters.

The source specifies a position-size calculation based on account balance, risk fraction, stop percentage, leverage, and price. It places ATR-based stop and target orders after an entry. There are notable differences between description and implementation: the code uses a separate stop-loss multiplier for the ATR stop, while the percentage stop setting is used in sizing; the listed take-profit multiple is applied to ATR. The published configuration is for BTC/USDT futures over a daily period, but no results are reported. The text warns of leverage, whipsaw, volatility, slippage, and sizing risks, so backtest performance and live suitability are not established.

Key ideas

• A fast and slow EMA crossover supplies direction, with RSI thresholds filtering entries.
• The code calculates trade quantity from account balance, stated risk, stop percentage, leverage, and price.
• ATR-based stop and target levels are set relative to the entry bar’s close, with separate multipliers.
• The prose and code describe stop sizing differently, and no backtest results are provided.
• Leverage and fast-market slippage can magnify losses or make execution differ from intended levels.

Tags

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