EMA Trend, RSI, and ADX Filters with ATR-Based Risk Controls

Summary

This trend-following design combines a 50-period and 200-period EMA relationship with RSI momentum and an ADX strength threshold. It requires the shorter EMA to remain above the longer one for more than ten periods, RSI to exceed its buy threshold, and ADX to indicate a sufficiently strong trend. Position size is tied to account equity and an ATR-based stop distance, and the code includes a trailing exit mechanism.

The document gives parameter settings and a published daily DOGE/USDT backtest interval, but reports no performance statistics, so it does not establish profitability. It identifies late reactions near reversals, whipsaws in sideways markets, parameter sensitivity, and slippage as concerns. There is also an implementation caveat: the code calculates a stop-loss price but does not pass it to an exit order, while the trailing exit is the active exit instruction. The example is long-only, despite broader language about trend direction, and the backtest context is too limited to support general conclusions.

Key ideas

• The long entry combines EMA alignment, a persistence condition, RSI momentum, and an ADX threshold.
• Position size is based on equity risk divided by an ATR-scaled stop distance.
• The code submits a trailing exit, while its separately calculated stop-loss price is unused.
• The provided example enters long positions and does not implement a short-side setup.
• Sideways markets, reversals, parameter choices, and execution slippage may impair results.

Tags

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