EMA, RSI, and ADX Trend Signals with ATR Risk Management
Summary
This BTC perpetual futures strategy combines an EMA crossover with RSI and ADX filters. It enters long when price crosses above the EMA while RSI is above 50 and ADX exceeds a threshold; short entries use the inverse crossover and RSI condition. ATR sets stop and profit distances, and the design includes trailing stops and several position-sizing approaches, including risk-based, capital-based, fixed-amount, and fixed-contract sizing.
The document describes the rules and inputs but reports no performance results. Its published backtest settings cover a short BTC_USDT futures interval at 45-minute bars, which is not enough evidence to establish robustness. The source also exposes practical caveats: indicator lag and false signals in sideways markets, parameter sensitivity, and leverage risk. Some parameter descriptions and implementation details are not fully aligned—for example, RSI overbought and oversold inputs appear in the code but do not govern the stated entry rules—so the strategy should be evaluated against its actual implementation before use.
Key ideas
- Long entries require an upward price crossover of the EMA, RSI above 50, and ADX above its threshold.
- Short entries use a downward EMA crossover, RSI below 50, and sufficient ADX strength.
- ATR determines stop-loss and take-profit distances, with a trailing stop also specified.
- Position size can be based on risk, a share of equity, fixed capital, or fixed contract quantity.
- The document gives no backtest results and identifies lag, range-bound false signals, parameter sensitivity, and leverage as risks.
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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.