EMA, RSI, and MACD Filters for Trend Entries

Summary

This strategy uses a short and long EMA crossover to indicate direction, RSI thresholds to screen entries near extreme readings, and MACD relative to its signal line as additional confirmation. A long signal requires the short EMA to cross above the long EMA, RSI below the overbought threshold, and MACD above its signal line. A short signal uses the reverse EMA cross, RSI above the oversold threshold, and MACD below its signal. The code displays the signals on the chart and uses configurable EMA and RSI settings.

The document includes BTC/USDT futures backtest settings spanning about a year, but gives no return, risk, or benchmark statistics, so the settings alone do not demonstrate effectiveness. It identifies repeated crosses in range-bound markets, false entries at turning points, parameter sensitivity, and the absence of explicit stop-loss or take-profit logic as limitations. The written rules describe MACD crosses, while the supplied code checks whether MACD is above or below its signal line instead. Suggested trend filters and risk controls are ideas for further investigation, not evaluated results.

Key ideas

• EMA crossovers set the proposed direction of trades.
• RSI thresholds screen out long entries in overbought conditions and short entries in oversold conditions.
• MACD confirms direction, although the example code checks relative values rather than fresh crossovers.
• The strategy has no built-in stop-loss or take-profit rules.
• The published backtest settings include no performance statistics.

Tags

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