Long-Only Trend Following with a Fast and Slow EMA Ribbon

Summary

This strategy uses a ribbon of seven fast EMAs and a wider set of slower EMAs to track medium- and long-term trends. The source code defines bullish alignment when each EMA in a group is above the next, and enters a long position when both the fast and slow groups are aligned. It closes the long when the fast group loses its bullish alignment. Although the description discusses crossovers between the groups, the code’s actual entry and exit conditions are based on the ordering within each group.

The document gives parameter defaults and published backtest settings for BTC/USDT futures, but reports no performance results. The strategy is long-only and provides no explicit position sizing or risk controls beyond its signal-based exit. Its authors note that long holding periods can miss short-term moves and that ranging markets may produce unwanted signals. The suggested volume and moving-average filters are ideas for further testing, not demonstrated improvements.

Key ideas

• The strategy enters long when both fast and slow EMA groups are aligned in bullish order.
• It exits when the fast EMA group no longer has bullish alignment.
• The slow group spans short-to-long periods to represent broader trend direction.
• The document provides backtest settings but no performance evidence.
• Ranging markets and parameter choices may affect signal quality.

Tags

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