Trend Following with EMA Crossovers, Williams Fractals, and RSI
Summary
This strategy combines moving average alignment with Williams fractals and RSI to enter trend trades around possible turning points. Long entries require the short EMA to cross above the medium and long EMAs while a Williams fractal identifies a low in oversold territory; shorts use the inverse EMA alignment with an overbought high. RSI is described as an additional signal check. The listed defaults use three EMA lengths of 20, 50, and 100, with a 14-period RSI, while the order rules include percentage take-profit and stop-loss exits.
The document explains the intended use of the indicators but supplies no performance results or detailed validation. Its published test configuration is a brief BTC/USDT futures sample on hourly bars, so it cannot establish robustness across markets or regimes. The text itself flags difficulty identifying reversals and lag in the EMA signals; the conditions also mix trend confirmation with reversal signals, which may produce sparse or conflicting entries. Suggested extensions include testing alternate EMA settings, volatility-based exits, and adaptive sizing.
Key ideas
- The strategy uses short, medium, and long EMAs to define directional alignment for entries.
- Williams fractals and overbought or oversold readings are intended to identify potential turning points.
- RSI is included as an additional confirmation filter, though its precise entry threshold is not specified.
- Percentage-based take-profit and stop-loss orders manage exits, while EMA lag and reversal uncertainty remain risks.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.