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Moving Average Trend Following with MACD, RSI, and EFI Filters

Article Strategy library · Author: ChaoZhang
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Summary

This strategy uses multiple moving averages to define trend direction and combines them with MACD, RSI, and Elder Force Index (EFI) readings to filter entries. The stated long setup requires a bullish moving-average crossover, positive MACD, RSI recovering from a low, and negative EFI. The short setup reverses those conditions. Exits are described as combining an EFI threshold with price crossing a specified moving average. The document presents the method as intended for medium- to long-term trend tracking.

The source code implements its own detailed rules, including simple moving averages, MACD formed from two averages, RSI, and EFI-based entry and exit thresholds. Those rules do not map cleanly to every condition in the prose, and several declared inputs are unused or do not control the described behavior. Published settings cover a one-month BTC/USDT futures test, but the document offers no performance figures despite broad claims about optimization. It explicitly acknowledges overfitting risk, poor behavior in sideways markets, and the possibility that sudden moves can defeat stops. Real trading performance remains unvalidated.

Key ideas

  • The stated entries require moving-average trend signals to agree with MACD, RSI, and EFI conditions.
  • The described exits combine EFI thresholds with price crossing a selected moving average.
  • The source code's concrete rules differ from parts of the narrative and include unused parameters.
  • The document warns about choppy markets, sudden losses, and overfitting.
  • A short BTC/USDT futures backtest window is specified, but no results or live validation are provided.

Tags

Technical indicatorsTrend followingMomentumRisk managementCryptoFutures

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