EMA Crossover Trend Filter with VWAP and SMA Confirmation

Summary

This two-sided trend-following strategy enters on a crossover between a 17-period and a 31-period EMA. Long entries require price to be above both VWAP and a 69-period SMA; short entries require it to be below both. Separate, faster EMA crossovers provide routine exit signals, while a qualifying opposite entry can close the current position and reverse it directly.

The document presents the filters as a way to screen weaker signals and describes the faster exit pair as more responsive than the entry pair. It also warns that layered conditions can delay entries or reduce trade frequency, that moving-average settings are sensitive to the asset and timeframe, and that the rules lack an explicit stop-loss or take-profit. Frequent reversals may add trading costs. The source and backtest settings identify an ETH/USDT futures test period and hourly bars, but no outcome statistics are supplied. The stated benefits are therefore hypotheses rather than demonstrated performance, and the strategy's risk controls need further evaluation.

Key ideas

• The 17/31 EMA crossover generates entries only when price also aligns with VWAP and the 69-period SMA.
• An 8/9 EMA crossover supplies the routine exit signal.
• An opposite entry condition can close an existing position and reverse its direction.
• Multiple filters may reduce false signals while delaying entries or lowering trade frequency.
• The described system lacks an explicit stop-loss, and the document reports no backtest outcomes.

Tags

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