RSI and EMA Signals with Leveraged Position Scaling

Summary

This two-sided strategy combines a medium-period RSI, a very short RSI, and three exponential moving averages. Long entries require the medium RSI to be low, the short RSI to cross upward through a threshold, and the EMAs to be ordered bearishly; short entries invert those RSI and EMA conditions. Positions are closed when both RSI measures reach opposing extremes and price is favorable relative to the position average. The description also proposes scaling each subsequent position to twice the existing size and sizing an initial trade from account equity and leverage.

The document presents a short BTC/USDT futures backtest configuration but offers no measured results. Its own risk discussion highlights high leverage, the absence of a stop loss, false signals in range-bound markets, and exposure growth from repeated scaling. Although it calls the approach hedged, the described entries and position management do not establish a market-neutral hedge. The strategy should therefore be read as a ruleset proposal with substantial unresolved sizing and risk questions, not as evidence of reliable returns.

Key ideas

• Long and short entries combine RSI threshold crossovers with a three-EMA ordering filter.
• Profit-taking uses opposing RSI extremes and requires price to be favorable relative to average entry price.
• The proposed sizing uses equity and leverage for an initial position, then doubles existing size on later entries.
• The document describes no stop-loss rule and warns that leverage and repeated scaling can magnify losses.
• The included short futures test setup has 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.