EMA Trend Filter with ADX, RSI Entries, and ATR-Based Exits
Summary
This multi-indicator system uses the relative ordering of fast and slow EMAs to set trend direction, and requires ADX to exceed a threshold before treating that trend as sufficiently strong. RSI threshold crossovers then trigger entries: a recovery above the oversold level for longs or a move below the overbought level for shorts. ATR sets stop distance, and the target is placed using a stated reward-to-risk ratio.
The document outlines adjustable indicator settings and discusses delayed signals, frequent trades in ranging markets, and parameter dependence. It suggests volume or volatility filters, adaptive settings, and trailing stops as possible extensions. Published backtest settings cover DOGE/USDT on one-minute data over a short January 2025 period, but no results are given. The title and overview describe a general trend system, while the source strategy name references another market; the example therefore does not establish performance across instruments or market regimes.
Key ideas
- Fast and slow EMA ordering determines the permitted trend direction.
- ADX above the stated threshold filters for stronger trends.
- RSI threshold crossovers trigger entries in the direction of the EMA trend.
- ATR determines stop distance, and the target uses a fixed reward-to-risk multiple.
- The document reports no backtest results and notes lag, range-bound trading, and parameter sensitivity.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.