Multi-Period EMA Trend Filter with Long-Only Entries

Summary

This document presents a trend-following method using 10-day, 100-day, and 200-day exponential moving averages. The accompanying source enters long when the three averages are aligned in ascending order, with the shortest above the middle and the middle above the longest. It closes the long when that alignment no longer holds. The article also describes a date filter, although the source’s date-validation function always returns true, so the published code does not actually enforce the selected dates.

The written overview describes signals from crossovers of the short average with either longer average, but the source’s operative entry rule instead checks the full bullish alignment. It does not implement short selling. The published backtest settings specify BTC_USDT futures over approximately one year, but no returns, drawdowns, or other results are reported. The document acknowledges that moving averages lag and that unexpected market events can undermine the approach; its suggestions to add indicators or tune periods are proposals rather than tested improvements.

Key ideas

• The source uses 10-day, 100-day, and 200-day EMAs to define a bullish trend alignment.
• It opens a long when the shortest EMA is above the other two in descending order.
• It exits when that bullish EMA ordering ends, without opening a short position.
• The described date filter is ineffective in the included source because its validation function always passes.
• The document states backtest settings but supplies no performance statistics.

Tags

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