RSI and EMA Crossover Rules for Long-Only Trend Entries

Summary

This long-only strategy combines an RSI filter with 9-period and 50-period exponential moving averages. It enters when the fast EMA crosses above the slow EMA, RSI has risen by more than five points from its prior reading, and RSI remains below 70. It closes the long position when the slow EMA crosses back above the fast EMA. The source specifies 30% of equity per trade and a commission assumption, but does not provide performance outcomes.

The document presents RSI as a guard against entries at elevated readings and the EMA crossover as a trend-direction signal. It acknowledges that both indicators lag during sharp moves and suggests testing different settings, position sizes, and stop conditions. The text also refers to avoiding oversold areas, though the explicit entry rule is an RSI rise while below 70. The supplied backtest window and market are limited context; absent reported returns, drawdowns, and robustness checks, the strategy's claimed profitability is not demonstrated.

Key ideas

• A long entry requires an upward 9/50 EMA crossover and a rising RSI below 70.
• The RSI rule checks its increase against the previous reading.
• A downward EMA crossover closes the long position.
• The source sets trade size at 30% of equity and includes a commission assumption.
• No performance statistics are reported, and indicator lag remains a stated risk.

Tags

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