EMA, MACD, and RSI Trend Entries with Conditional Exits

Summary

This long-only trend strategy uses the relative position of short and long EMAs as a direction filter, then enters when MACD crosses upward and RSI remains below its overbought threshold. While a position is open, it defines exit conditions using a bearish EMA relationship, price below the short EMA, a MACD cross downward, or an overbought RSI that is falling. A stop price is set 1.5% below the average entry price.

The document includes parameter defaults and a BTC/USDT futures backtest configuration from February 2024 to February 2025 on hourly bars, but gives no performance figures. The code calls the exit order with the danger condition as its activation condition, so the fixed stop is not necessarily continuously active before that condition occurs. It does not define short entries despite discussing bearish conditions. The authors identify whipsaws in ranging markets, indicator lag, and parameter sensitivity as limitations; the proposed refinements, such as volatility filters and trailing stops, are not tested here.

Key ideas

• Long entries require the short EMA above the long EMA, an upward MACD cross, and RSI below its overbought level.
• Exit conditions combine trend deterioration, price falling below the short EMA, a downward MACD cross, or a falling overbought RSI.
• The specified stop price is 1.5% below the average entry price, though the code conditions the exit order on a danger signal.
• The published hourly BTC/USDT futures backtest configuration reports no performance results.
• Ranging markets, indicator lag, and parameter sensitivity are identified as risks.

Tags

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