EMA Slope Cross Trend Following with Trend and Volatility Filters
Summary
This strategy compares smoothed slopes of a fast and slow moving average to follow directional trends. It calculates the percentage change in each average, smooths those slope series, and takes long or short exposure when the fast slope is above or below the slow slope. The described default average lengths are 130 and 400, with an optional 200-period price trend filter and a threshold on the slope difference to screen out weak signals.
The source includes configurable moving-average types and a published BTC/USDT futures test window, but the document reports no measured performance results. It describes the approach as best suited to a four-hour timeframe and liquid, volatile crypto assets, while warning that ranging markets can cause repeated entries and exits and that parameter choices may miss turning points. It recommends evaluating alternative periods and considering stop-loss rules; the test settings alone do not establish profitability.
Key ideas
- The strategy compares smoothed slopes from fast and slow moving averages to define direction.
- A price filter relative to a longer moving average can restrict trades to the prevailing trend.
- An optional minimum slope difference is intended to avoid weak signals during quiet conditions.
- Opposite slope crosses close positions, while ranging markets may generate repeated trades.
- The published test configuration does not include reported performance statistics.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.