Multi-EMA Crypto Trend Following with RSI Filters and ATR Exits
Summary
This cryptocurrency trend strategy uses 9-, 20-, and 50-period exponential moving averages to identify direction. A short-term crossover of the middle average, with price on the corresponding side of the long-term average, sets the directional bias. RSI ranges filter entries, and price must be separated from the long-term average by more than a specified ATR multiple. Stops and profit targets are also set as ATR multiples, with different multipliers proposed for selected currency pairs, and the strategy limits trading to one entry per day.
The document supplies historical backtest settings and implementation details, but no returns, drawdowns, or other results. The stated method therefore remains a strategy description, not evidence of profitability. Its caveats include reversal losses, slippage in thin markets, missed signals from the daily limit, sensitivity to parameters, and weaker behavior in range-bound conditions. The provided code also includes forex-specific settings despite the overview's focus on cryptocurrencies.
Key ideas
- EMA crossovers and price relative to the long-term EMA establish trade direction.
- RSI ranges and an ATR-based distance threshold filter candidate entries.
- ATR multiples set stop-loss and take-profit levels, while a daily limit restricts trade frequency.
- Published backtest settings are included, but no performance results are reported.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.