Long-Only Bitcoin Trend Engine with EMA, Momentum, and Risk Filters
Summary
The excerpt describes a long-only Bitcoin trend strategy that combines three smoothed EMAs with filters for trend structure, price-path efficiency, momentum persistence, volatility, and breakouts. It requires the fast, middle, and slow EMAs to be ordered bullishly, checks their separation and slopes, and measures whether recent price movement has progressed efficiently rather than oscillating. Momentum and persistence conditions, an ATR regime check, and a breakout above a prior high further qualify an entry.
The script exposes configurable thresholds and uses a stated two-times leverage setting, a hard percentage stop, an ATR trailing measure, and a profit-lock parameter. It also blocks new positions on weekends and closes an open position after Friday's specified New York time. The supplied excerpt ends partway through the breakout logic, so the complete entry, exit, sizing, and order behavior cannot be assessed. It provides no backtest results or evidence that the parameter values are robust; leverage and rule interactions may materially affect risk.
Key ideas
- The strategy filters long entries using an ordered stack of smoothed fast, middle, and slow EMAs.
- Slope, EMA separation, path efficiency, momentum persistence, and ATR conditions measure trend quality.
- A breakout above the prior lookback high is one of the entry filters.
- Risk settings include leverage, a hard stop, an ATR trail, and a profit lock.
- Weekend entry restrictions and a Friday close rule are included, while the excerpt omits the full execution logic.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.