EMA Crossover Trend Following with Supertrend and RSI Filters

Summary

This trend-following system uses fast and slow EMA crossovers to generate directional signals, then checks the Supertrend direction and RSI before entry. A long requires an upward EMA crossover, bullish Supertrend state, and RSI below its overbought threshold; a short uses the corresponding downward conditions and requires RSI above its oversold threshold. ATR determines stop-loss and take-profit distances from the average entry price.

The supplied defaults include short EMA periods, an ATR-based Supertrend calculation, and separate RSI thresholds. Although the inputs include start and end dates, the code sets the date-range condition to always true, so those date filters do not actually constrain entries. Published backtest metadata specifies BTC/USDT futures on hourly bars over roughly one month, but no results are shown. The document warns that multiple filters can miss trades, rapid volatility can trigger stops, parameter tuning can overfit, and trading costs matter; it does not provide evidence that the method is profitable.

Key ideas

• EMA crossovers propose entries, with Supertrend direction and RSI thresholds acting as filters.
• ATR scales stop-loss and take-profit distances to recent volatility.
• The configured date inputs are not applied because the code hard-codes the date condition as true.
• The listed backtest metadata identifies hourly BTC/USDT futures data but gives no outcome statistics.
• The document identifies missed signals, stop-outs, overfitting, and transaction costs as limitations.

Tags

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