Long Trend Following with VWAP, EMA, RSI, and Trailing Exits

Summary

This long-only approach combines VWAP, a 15-period EMA, and RSI for entry selection. It buys when the close is above both VWAP and the EMA and RSI exceeds its configured threshold; the listed threshold is 45. Exit management uses a stop, a fixed profit target, and a trailing-stop offset, with listed settings of 0.5%, 3.5%, and 1% respectively.

The document frames VWAP as a price benchmark, EMA as a trend filter, and RSI as a momentum condition. It says the combination may suit sustained trends, while warning that ranging markets can generate false signals and that the trailing distance needs calibration. It also notes that the approach does not cap loss size per trade. Published settings identify BTC-USDT futures, daily bars, and hourly base data from September 2022 to February 2023, but no results are included. The description and source do not establish that the stated indicators improve performance or define a tested risk limit.

Key ideas

• The strategy enters long when price is above VWAP and EMA and RSI clears its configured threshold.
• It uses stop-loss, profit-target, and trailing-stop settings to manage exits.
• Range-bound conditions can produce false signals from the indicator combination.
• The document warns that individual trade losses are not explicitly capped.
• Backtest settings are listed without performance results.

Tags

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