EMA Trend Following with RSI and Supply-Demand Entry Filters

Summary

This strategy combines EMA trend signals, RSI thresholds, and supply and demand zones to time entries. It uses a 50-period EMA crossing a 200-period EMA to identify direction, then requires price to move beyond an EMA and RSI to meet a directional threshold. The write-up describes buying near demand and selling near supply as additional entry filters.

The document provides rules and parameters, plus backtest settings for BTC/USDT futures, but reports no performance results. There is a mismatch between the prose and the code: the prose describes RSI as excluding overbought or oversold conditions, while the listed conditions require RSI above 55 for a long and below 45 for a short. The zone inputs are simple enabled switches in the code rather than calculated price zones, so they do not independently locate supply or demand. It also notes EMA lag, whipsaws in ranging markets, and subjective zone selection as limitations.

Key ideas

• EMA crossovers define the directional signal, with price relative to the EMA required for entry.
• The stated rules use RSI thresholds above 55 for long entries and below 45 for short entries.
• Supply and demand zones are presented as entry filters, but the code implements them as boolean switches.
• The document gives BTC/USDT futures backtest settings without reporting performance metrics.
• EMA lag and ranging-market whipsaws are identified as risks.

Tags

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