EMA Crossover Trend Strategy with ADX, RSI, and ATR Levels

Summary

This trend-following system combines a 50-period and 200-period EMA crossover with ADX and RSI filters. The stated rules require ADX above 20 and RSI between 30 and 70 before taking a directional signal. The document also describes ATR-based risk levels, with a stop at twice ATR and a target at four times ATR. It presents these filters as ways to screen weak trends and avoid entries at RSI extremes.

The published backtest settings cover SOL/USDT on Binance from February to August 2024, but no returns or other test results are reported. The source code's order logic may not implement the described protective exits: it passes the calculated stop and target as parameters to entry orders, rather than placing separate exit orders. The document also notes that moving-average lag can hurt during reversals and that sideways markets can produce false signals. Parameter choices and execution conditions remain unvalidated.

Key ideas

• EMA crossovers provide the strategy's directional trend signal.
• ADX above 20 and RSI between 30 and 70 are stated as entry filters.
• The description specifies ATR-based stop and target distances of two and four ATR, respectively.
• The source's order parameters may not implement the described exits as protective orders.
• The published backtest settings include no performance results.

Tags

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