Slow Heiken Ashi and 100-Period EMA Trend Strategy

Summary

This strategy combines a 100-period exponential moving average with smoothed Heiken Ashi values to trade in the direction of the broader trend. It opens long positions when price is above the EMA and short positions when below it, while the Heiken Ashi component is used to time entries and exits. Its smoothing uses a KAMA-style adaptive filter, and the source also defines shorter EMA periods, though the stated direction filter centers on the 100-period average.

The document argues that trend filtering and reversal cues may help capture extended moves and limit losses, but provides no reported performance results. It warns that reversal signals can lag, sharp moves around the EMA can increase losses, and parameter choices affect behavior. The published backtest settings cover a short BTC futures period on Binance, which is not enough evidence to establish robustness across markets or conditions. The text also describes exits in terms of Heiken Ashi crossovers, while the source implements entry and close conditions with additional size and timing logic, so exact behavior depends on the code.

Key ideas

• Price relative to the 100-period EMA sets the long or short market bias.
• Smoothed Heiken Ashi values provide signals intended to time entries and potential reversals.
• A KAMA-style adaptive calculation is used to smooth the Heiken Ashi series.
• The document recommends position sizing and stop losses because signals may lag or fail.
• The cited backtest configuration is limited to a short BTC futures sample.

Tags

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