Long-Only EMA Crossover Entries Confirmed by Overbought RSI

Summary

This long-only strategy uses 50-period and 100-period exponential moving averages to define a bullish state. Once the faster EMA crosses above the slower one, it enters when RSI rises above the configured overbought level, defaulting to 70. It closes when the faster EMA falls below the slower EMA. The source also sets a stop at the slower EMA when the bullish crossover first occurs, although it resets that stop variable upon entry; as a result, the stop may not remain active during the position.

The document gives adjustable EMA and RSI settings and a one-year, one-hour BTC/USDT futures backtest configuration, but reports no results. It presents the method as suited to trending markets and notes that crossover lag, sideways-market false signals, and the overbought confirmation delaying entries can limit it. The code trades long only, despite including an oversold input that is not used in its entry or exit rules. Suggestions such as volume or volatility filters, trailing stops, and risk-based sizing are proposals rather than tested enhancements.

Key ideas

• The strategy uses 50-period and 100-period EMAs to identify a bullish crossover state.
• It enters long when RSI exceeds the configured overbought threshold after the bullish crossover.
• A bearish EMA state closes the long position; the code does not open short trades.
• The oversold RSI setting appears in the inputs but is not used by the coded trading rules.
• The source sets a stop at the slower EMA on crossover but resets the stop variable after entry.

Tags

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