EMA Crossover Entries with RSI Profit Exits and Fixed Stops

Summary

This strategy combines a 68-period exponential moving average with a 13-period relative strength index. It opens a long when price crosses above the EMA plus an offset and a short when price crosses below the EMA minus an offset. For a long, the described exit takes profit when RSI reaches 70; for a short, it takes profit when RSI falls to 28. Both sides also use a fixed-point stop, set to 20 points in the supplied parameters.

The document presents the EMA as a medium-term trend reference and RSI as a short-term overbought or oversold gauge. It includes parameter defaults and backtest settings for ETH/USDT over part of 2024, but provides no reported returns, trade statistics, or comparison against a benchmark. The text flags lagging signals at trend changes, repeated losses in range-bound conditions, and sensitivity to parameter choices. It suggests testing trend filters, volatility-based stops, volume confirmation, and market-regime filters; these are possible extensions, not demonstrated results.

Key ideas

• Long and short entries follow price crossovers of an offset EMA.
• The strategy uses a 68-period EMA and a 13-period RSI in its stated defaults.
• RSI thresholds of 70 for longs and 28 for shorts trigger profit exits, alongside fixed-point stops.
• The published ETH/USDT backtest settings include no performance results.
• Lagging EMA signals, ranging markets, and parameter sensitivity are identified as limitations.

Tags

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