Long-Only Intraday Momentum with SMA, EMA, and Volume

Summary

This document describes a long-only intraday strategy that combines moving-average alignment with rising price patterns to seek upward momentum. It enters when the SMA is above the EMA and one of several three- or four-bar conditions is met. One entry pattern also requires volume to exceed a trigger; the other patterns use the relationship between intermediate lows and the opening price of the initial bar. A cross below the EMA by the SMA triggers an exit.

The document gives example parameter values and published BTC/USDT futures backtest settings, but reports no performance results. It presents the method as simple and potentially useful during sustained advances, while warning that it may struggle in falling or sideways markets and cannot benefit from short positions. Volume settings may need adjustment for high-frequency data. Stop losses and parameter testing across timeframes are suggested, but no tested improvements or specific stop-loss rule are provided.

Key ideas

• The strategy opens long positions when the SMA is above the EMA and a qualifying rising-bar pattern appears.
• One entry pattern also requires a volume threshold, while other patterns use bar lows relative to an earlier open.
• A downward SMA crossover below the EMA is the stated exit signal.
• The method is designed to follow upward momentum and does not take short positions.
• The document warns of drawdowns in falling or sideways markets and provides no backtest performance results.

Tags

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