EMA Trend Filters and PPO Crossovers for Trading Signals

Summary

This system combines a 400-period exponential moving average (EMA) as a long-term trend reference with the Percentage Price Oscillator (PPO) as a momentum signal. Basic entries follow price crossing the long EMA. Additional entries require price to be on the corresponding side of that EMA while the PPO crosses its signal line. A 180-period EMA is plotted with color indicating whether price is above or below it, but the supplied code does not use it to gate entries. PPO is built from 12- and 26-period EMAs and a 9-period signal average.

The document describes an hourly, one-year ETH/USDT futures backtest setup, but provides no performance metrics. It warns that the long EMA can react slowly and that sideways markets may produce repeated false signals. The code does not include stops, take-profit rules, or position sizing, and its “strategic” and basic signals may overlap. Adaptive parameters, market filters, and added risk controls are suggested for future work, not demonstrated results.

Key ideas

• Price crossing the 400-period EMA generates the basic long or short signal.
• PPO crossovers provide additional entries when price is already on the matching side of the long EMA.
• The PPO uses 12- and 26-period EMAs with a 9-period signal average.
• The 180-period EMA indicates intermediate direction visually but does not filter entries in the supplied code.
• The published hourly ETH/USDT test setup has no reported performance metrics, and the rules lack explicit risk controls.

Tags

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