EMA Trend Following with RSI Exits and a Long-Term Filter

Summary

This strategy combines short-term EMA crossovers with a longer-term EMA filter and RSI exits. It enters long when the 5-period EMA crosses above the 13-period EMA while price is above the 50-period EMA; it enters short on the opposite crossover when price is below the 50-period EMA. RSI readings above 70 close longs, while readings below 30 close shorts. The document also suggests position sizing, stop losses and parameter tuning as possible improvements.

The document describes the rules and risks but gives no performance results. It warns that moving-average signals can be late or prone to repeated exits in choppy markets, and that fixed indicator settings may not suit different conditions. The published backtest configuration uses BTC_USDT futures over a short period, but no results are reported. Treat the strategy as a testable outline, not evidence of profitability; the rules also do not specify detailed execution or risk limits.

Key ideas

• A 5/13 EMA crossover sets direction, subject to price being on the matching side of the 50-period EMA.
• RSI thresholds provide additional exit conditions for open positions.
• The document identifies choppy markets and lagging signals as key weaknesses.
• Position sizing and explicit stop losses are suggested areas for further development.

Tags

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