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HMA and EMA Crossovers Confirmed by RSI and Stochastics

Article Strategy library · Author: ianzeng123
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Summary

This strategy combines a 12-period Hull moving average with a 5-period EMA referenced two bars earlier, then filters crossover entries using RSI and two smoothed stochastic readings. Long signals require price above both averages, momentum readings above 50, and an upward HMA crossover; short signals require the opposite alignment. Stops use the prior two candles’ low for longs or high for shorts, while profit targets are set at 1.65 times the entry-to-stop distance. The source also specifies a 10% equity position size and a commission rate of 0.01%.

The document includes a daily ETH_USDT futures backtest configuration from January to April 2025, but no performance results. The prose describes the EMA shift as forward-looking, but the source’s indexing uses earlier EMA values, so that interpretation is not established by the code. Fixed parameters may be market-sensitive, and multiple filters can overfit; sideways markets and wide stops during volatility are also cited as concerns. Adaptive parameters and regime filters are proposed, not validated.

Key ideas

  • Long and short entries require an HMA crossover aligned with price, RSI, and two stochastic filters.
  • The RSI and both smoothed stochastic readings must agree on direction relative to 50.
  • Stops use the preceding two candles’ extremes, and targets use a 1.65 risk multiple.
  • The source references the EMA from two bars earlier, despite prose characterizing the shift as forward-looking.
  • The ETH_USDT futures configuration reports no performance statistics.

Tags

CryptoFuturesMomentumTechnical indicatorsRisk managementBacktesting

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