Trend Following with 200 EMA, VWAP, and MFI Confirmation

Summary

This trend following approach combines a 200-period EMA, VWAP, and a 14-period MFI to create long and short entry signals. Entries require price to clear a buffer above or below the EMA, align with VWAP and MFI conditions, and move in the same direction as both a higher timeframe EMA and recent price action. The buffer is intended to reduce trading on small moves around the average.

The document describes configurable thresholds and provides Pine Script logic, but it reports no performance results. Its published backtest settings specify BTC_USDT futures, with a daily chart period and hourly base period over roughly one year. The writeup warns that ranging markets, turning points, sudden events, and poor parameter choices can produce losses or missed trades. It suggests testing parameters and adding explicit trade risk controls; the described entry logic itself does not specify stop-loss rules.

Key ideas

• Long entries require price above the buffered EMA and VWAP, MFI above its threshold, higher timeframe EMA confirmation, and rising price action.
• Short entries use the opposite conditions, including price below the lower EMA buffer and falling price action.
• The strategy uses a 200-period EMA, 14-period MFI, and configurable buffers and thresholds.
• The document supplies backtest settings but no performance statistics, so strategy effectiveness is not demonstrated.

Tags

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