EMA Crossover Trend Following with RSI and Volume Filters

Summary

This proposed trend-following system combines a 50-day and 200-day exponential moving average crossover with RSI and a volume filter. A bullish crossover is eligible when RSI is above 50 and volume exceeds 1.5 times its 20-day average; a bearish crossover with RSI below 50 and elevated volume closes the long position. The description also specifies an ATR-based stop near a recent low and a profit target three times the stop distance. Although the prose describes long and short signals, the supplied code only enters long positions and closes them on a bearish signal.

The document discusses filtering weak signals and adapting stop distances to volatility, while warning that ranging markets can produce false signals and strict filters can exclude trades. It lists BTC/USDT futures and a one-year backtest window, but reports no results. The stated 3:1 target is a design choice, not evidence of profitability, and the parameter list includes RSI overbought and oversold settings that the shown signal logic does not use.

Key ideas

• The system uses a 50-day and 200-day EMA crossover to set trend direction.
• RSI above or below 50 and volume above its recent average act as signal filters.
• The described risk plan uses an ATR-based stop and a target three times the stop distance.
• The provided code implements long entries and exits, despite prose that describes short signals.
• The BTC/USDT backtest settings provide a period but no performance evidence.

Tags

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