Range Filter Entries with Dual EMA Trend and Trailing Exits

Summary

This strategy combines a smoothed range filter with fast and slow EMAs. The filter estimates a range from smoothed price changes and updates only when price moves beyond that range; its direction and price position produce alternating long or short signals. Entries then require the fast EMA to be on the matching side of the slow EMA, plus a candle direction and close relative to the fast EMA. Positions are restricted to one at a time, with a loss limit and trailing exit settings. The published configuration covers ETH/USDT futures from January to October 2022, but includes no performance results.

The document’s title emphasizes dual EMAs, while the source shows that the range filter generates the underlying signal and EMAs act as entry filters. Its settings include a 20-period range, a 3.5 multiplier, 50- and 200-period EMAs, and exit parameters. These rules describe an attempt to follow directional moves while suppressing some countertrend entries; they do not establish effectiveness. The provided source also labels its script as a study while containing strategy order calls, a detail that may affect whether it runs as intended on its stated platform.

Key ideas

• A smoothed range filter advances only after price clears a calculated range.
• Filter direction and price position create alternating long and short signals.
• Fast and slow EMA alignment, candle direction, and price relative to the fast EMA screen entries.
• The strategy allows one open position and specifies loss and trailing exit settings.
• The backtest configuration provides no performance evidence, and the source has a study-versus-strategy declaration inconsistency.

Tags

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