EMA Ribbon Trend Filter with Smoothed RSI Entries and Swing-Based Exits

Summary

This strategy combines a fast and slow exponential moving average trend filter with a smoothed RSI trigger. The visible settings use 10- and 20-period EMAs, a 21-period RSI smoothed by a 50-period simple average, and separate trigger levels at 51 for buys and 49 for sells. Signals may require a crossing of those levels or simply that smoothed RSI remains beyond them. Both long and short entries require the fast EMA to be above the slow EMA, an unusual constraint that the code explicitly applies to each direction.

Stops are derived from recent swing highs or lows over a 20-bar lookback, with a tick buffer and minimum stop distance; targets use a stated 2-to-1 reward-to-risk ratio. The script also sets full-equity sizing, commission, order processing, and optional date bounds. The supplied source ends partway through the long-entry block, so short-side rules and the complete trade-box behavior cannot be assessed. No backtest window, instrument-specific results, or performance evidence is included in the excerpt.

Key ideas

• The trend filter compares 10-period and 20-period exponential moving averages.
• Entries use a smoothed 21-period RSI, with 51 and 49 trigger levels and an optional crossing requirement.
• Both long and short signals require the fast EMA to remain above the slow EMA.
• The visible long-side risk logic places stops beyond recent swing structure and sets targets at a 2-to-1 reward-to-risk ratio.
• The excerpt is incomplete and reports no backtest performance.

Tags

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