EMA Trend Entries with RSI, ADX, Volume, and Bracket Exits
Summary
This trend-following system uses a 9-period and 21-period EMA crossover as its directional trigger, then filters long entries with RSI above 50, volume above its 20-period average, and ADX above 25. Its sell rule is triggered by a downward EMA crossover, RSI below 50, or low volume when ADX is above 25. The strategy also sets entry-price-based stop and target levels: 3% and 5% for long trades, with the levels reversed for shorts.
The document provides BTC-USDT futures backtest settings for a short sample period, but no results, trade statistics, or comparison. The exits and filters have limitations: volume and RSI can trigger sales independently of a strong trend, and the percentage stops and targets do not adapt to changing volatility. The source uses the same exit order label for both long and short bracket orders, which may complicate order management depending on the platform. Suggested improvements include volatility-aware exits, persistence checks, multi-timeframe validation, and signal-based position sizing.
Key ideas
- Long entries require an upward EMA crossover plus RSI, volume, and ADX filters.
- A downward crossover, weak RSI, or low volume under the stated ADX condition can trigger a sell signal.
- Stops and targets are fixed percentages from average entry price, with opposite directions for long and short trades.
- The published BTC-USDT futures settings include no reported performance evidence.
- Volatility adaptation, trend persistence, and position sizing are proposed as areas for refinement.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.