Multi-Average Trend Entries with an EMA Filter and Timed Exits

Summary

This strategy combines three simple moving averages with a short exponential moving average to screen long entries. Its description treats price below the three averages as a downtrend and looks for a move back above them; the supplied rules further require price relationships to the shortest average, an upward candle condition relative to the EMA, and a declining intermediate average. Positions close after a configured holding duration or after a specified count of profitable closes.

The document presents the approach as a way to filter noise and avoid entering on a falling candle, but supplies no backtest performance figures to support those claims. The listed BTC/USDT futures backtest covers January 2024. Risks include sensitivity to instrument-specific parameters and unhandled price gaps. The prose also describes the exit count as a stop-loss mechanism, although the source closes after profitable closes, so it should not be interpreted as a conventional loss stop. A price-based stop and testing across instruments are suggested as further work.

Key ideas

• The entry logic combines three simple moving average conditions with an exponential moving average filter.
• The source includes a candle condition and an intermediate-average slope condition for long entries.
• Positions close after a maximum bar count or a configured number of profitable closes.
• Parameter sensitivity and price gaps are identified as risks.
• The stated backtest period has no accompanying performance results.

Tags

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