Triple EMA Crossover Trend Strategy with Tick-Based Exits
Summary
This trend-following system uses three exponential moving averages for entry direction and trend filtering. A cross of the 21-period EMA above the 50-period EMA triggers a long when price is above the 200-period EMA; the opposite cross triggers a short when price is below it. Each entry sets a stop and target in ticks from the signal price. The supplied defaults are 50 ticks for the stop and 100 ticks for the target, alongside the three EMA periods. Published backtest settings identify BTC_USDT futures over a specified date range, but the document gives no performance statistics.
The long-term average is intended to filter trades against the broader trend, while fixed exits define trade risk and reward levels. The document warns that crossovers can whipsaw in ranging markets, fills may slip during volatile periods, and fixed tick distances may not fit changing conditions. It also cautions that parameter optimization can overfit. Suggested extensions include volatility-based exits, volume or trend-strength filters, and waiting for a pullback after a crossover; these are proposals rather than evaluated improvements.
Key ideas
- A 21-period and 50-period EMA crossover generates entry signals, filtered by price relative to the 200-period EMA.
- Stops and profit targets are set as fixed tick distances from the entry signal price.
- The document reports backtest settings but no results or evidence of profitability.
- Ranging markets, slippage, fixed exit distances, and overfitting are identified risks.
- ATR-based exits and additional trend or volume filters are suggested for future testing.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.