Trading EMA Crossovers with a 10- and 60-Period Trend Filter

Summary

This simple trend-following strategy uses a fast and a slow exponential moving average, set to periods 10 and 60 by default. A cross above the slower average opens a long position. A cross below it either closes the long or opens a short, depending on whether short trading is enabled. The method relies on recent price momentum relative to the longer trend and is presented for volatile assets during bullish markets.

The document gives no detailed performance report. Although it claims drawdown is around 20%, its published backtest configuration covers only a short BTC/USDT futures interval, so that claim cannot be assessed from the evidence provided. The strategy may whipsaw in range-bound markets, and results can depend on the instrument, parameter choices, slippage, and fees. Stop losses, position sizing, and staged entries are suggested as possible additions rather than built-in features.

Key ideas

• A fast EMA crossing above a slow EMA triggers a long entry.
• A downward cross closes a long position or opens a short if shorts are enabled.
• The default EMA periods are 10 and 60.
• The document warns of whipsaws in range-bound markets and sensitivity to asset and parameter choices.
• Its backtest configuration is brief and does not establish the claimed drawdown behavior.

Tags

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