EMA Crossovers Confirmed by Supertrend for Trend Following

Summary

This trend-following method combines a fast EMA and a slow EMA with Supertrend, which is calculated using ATR. A long signal requires the fast average to cross above the slow average while Supertrend indicates an uptrend. A short signal requires a downward EMA cross and a Supertrend downtrend. The stated defaults are EMA periods of 5 and 20, an ATR period of 10, and a factor of 3. The source describes opening a long position and closing it on a short signal; it does not show a short entry, despite discussing short signals.

The published configuration specifies hourly ETH/USDT data on Binance from February to July 2024, but includes no performance statistics. The document identifies sideways markets as a source of false signals and quick reversals as a drawdown risk. It recommends evaluating larger timeframes, stop-loss rules, volatility-sensitive settings, volume filters, and position sizing. These are suggestions; the material does not establish that the strategy or proposed changes improve results.

Key ideas

• A long signal requires an upward fast-versus-slow EMA cross and an uptrend reading from Supertrend.
• A short signal requires a downward EMA cross and a downtrend reading from Supertrend.
• The stated defaults use EMA periods of 5 and 20 with ATR period 10 and factor 3.
• The source enters long and closes that position on a short signal, without implementing a short entry.
• Ranging markets and rapid reversals are identified as risks, and no backtest results are reported.

Tags

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