EMA Crossover Trend Following with Multi-Indicator Filters and ATR Exits
Summary
This spot-market strategy takes long positions when a fast EMA crosses above a slow EMA, provided ADX indicates a strong trend, MACD confirms upward direction, and RSI is below its overbought threshold. Its stated defaults use 8- and 21-period EMAs, an ADX threshold of 25, and an RSI ceiling of 70. Entries are evaluated on confirmed candles, with position size based on a percentage of equity and trading costs included in the strategy settings.
Risk controls combine an ATR-based stop and profit target with a trailing exit. The published backtest settings specify ETH/USDT on Binance over a daily period from February 2024 to February 2025, but no performance results are reported. The document identifies missed entries from stacked filters, false signals in choppy markets, gap risk, costs, and weak suitability for bear markets. It offers no evidence that the approach is profitable; its parameter recommendations and claimed benefits should be treated as hypotheses requiring independent testing.
Key ideas
- An upward fast-over-slow EMA crossover is the entry trigger, filtered by ADX, MACD, and RSI conditions.
- The strategy is long-only and intended for spot markets.
- ATR sets the initial stop and target, while a trailing exit is also specified.
- Entries are limited to confirmed candles, and position sizing is based on equity percentage.
- The published settings describe a daily ETH/USDT backtest, but provide no return or risk statistics.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.