Multi-EMA Trend Following with EOM Volume Confirmation
Summary
This strategy combines four exponential moving averages with an Ease of Movement (EOM) volume measure to identify long trends. The averages use periods of 13, 21, 50, and 180, while EOM above zero confirms bullish conditions and EOM below zero confirms bearish conditions.
The published logic offers two long-entry modes: require price and the averages to be ordered from shortest to longest, or use crossovers between the short average and intermediate averages. Positions are closed when the corresponding bearish conditions occur, with EOM also used as a filter. The document describes layered exits as a risk control, though the supplied code does not implement separate partial exits or a stop-loss.
A backtest configuration is provided for BTC/USDT futures over roughly one year, but no performance results are reported. The author notes that moving averages lag, volume signals can be wrong, and multiple conditions can make entries unclear. The strategy is presented as a starting point for testing rather than as validated evidence of profitability.
Key ideas
- Four EMAs with periods of 13, 21, 50, and 180 are used to represent different trend horizons.
- EOM above zero supports long conditions, while EOM below zero supports bearish conditions.
- The strategy provides two alternative long-entry rules based on EMA ordering or crossovers.
- The backtest setup specifies BTC/USDT futures, but the document gives no performance results.
- Moving-average lag, false volume signals, and unclear condition interactions are identified as risks.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.