EMA Crossover Strategy with RSI Filters and ATR Risk Controls

Summary

This multi-step trading strategy uses a fast and slow EMA crossover to set direction, then applies RSI thresholds as entry filters. A 14-period ATR determines stop and target distances, and the described sizing rule risks 1% of account equity based on the stop distance. The stated stop is 1.5 times ATR and the target is 3 times ATR, for both long and short trades.

The document explains the rules and identifies sideways-market whipsaws, slippage, and sudden reversals as risks. Its published backtest settings cover one week of hourly ETH trading, but no results are supplied, so they do not establish profitability. The source also names the strategy as a BTC scalping system despite those ETH settings. Suggested extensions include trend-strength filters, adaptive indicator periods, and trailing stops; the reported approach should be assessed with execution costs and broader market data before practical use.

Key ideas

• EMA crossovers determine long or short direction, subject to RSI filters.
• ATR sets stop and target distances, with the described target distance twice the stop distance.
• Position sizing is based on risking 1% of account equity at the stop level.
• The published backtest settings cover one week of hourly ETH data but report no performance results.
• Ranging conditions, slippage, and rapid reversals can undermine the strategy.

Tags

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