MACD Crossovers Filtered by an EMA Trend and Price-Based Exits

Summary

This strategy uses an EMA as a directional filter and MACD crossovers as entry triggers. Longs require price to remain above the EMA while MACD crosses upward below its zero line; shorts require price below the EMA while MACD crosses downward above zero. The source also defines exits using prior rolling lows or highs as stop levels, with profit targets calculated from the entry-to-stop distance and a configurable reward multiple.

The document supplies indicator settings and a BTC-USDT futures backtest configuration for January 2024, but reports no results or risk-adjusted statistics. Its description mentions false signals, subjective exit settings, and full-account-equity sizing as concerns. The implementation's date-window variables do not appear to constrain trading, and the entry conditions check for no open trade rather than explicitly closing an opposing position. These details, along with the short test period and absent costs in the stated source settings, limit what can be inferred about live performance.

Key ideas

• The EMA establishes the preferred price direction while MACD crossovers provide entry timing.
• Long and short entries require MACD crossovers on the corresponding side of the zero line.
• Prior rolling price extremes set stop levels, and profit targets scale the distance to those stops.
• The source sets position size to account equity and does not include commission costs in its stated settings.
• The supplied backtest setup reports no results, and implementation details warrant validation before drawing conclusions.

Tags

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