Multi-Timeframe EMA and MACD Trend Following with ATR Risk Controls

Summary

This trend-following system combines 7- and 90-period EMAs for direction, MACD crossovers for entry confirmation, and 8-hour EMA and volume conditions as a higher-timeframe filter. It uses the ratio of EMA separation to ATR to estimate trend strength and adjust position size. The described risk rules place a stop at 1.5 times ATR and a take-profit level at 3 times ATR.

The document includes a published ETH/USDT spot backtest configuration and source strategy, but gives no performance metrics, so it does not establish profitability or signal quality. It identifies repeated stop-outs near reversals, slippage in volatile periods, parameter overfitting, and false signals in ranging markets as limitations. Proposed refinements include stronger trend filters, adapting stop distances to volatility and holding time, improving the sizing logic, and distinguishing market regimes.

Key ideas

• The strategy uses 7- and 90-period EMAs to define trend direction and MACD crosses to confirm entries.
• An 8-hour EMA and volume condition filters signals using higher-timeframe data.
• Position size varies with a trend-strength measure based on EMA separation and ATR.
• Stops and profit targets are set at 1.5 and 3 times ATR, respectively.
• The document provides backtest settings but no reported performance results.

Tags

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