Triple EMA Crossover with a Long-Term Trend Filter
Summary
This trend-following system combines a fast EMA, a slower EMA, and a long-term EMA filter. With the stated defaults, it goes long when the fast EMA crosses above the slower one while both are above the filter, and short when the fast crosses below while both are below it. Positions close when the fast and slow averages cross in the opposite direction. The trading mode can restrict signals to long or short positions.
The document describes the logic and configurable periods, but reports no backtest outcomes. Its published setup uses BTC/USDT futures with daily bars over roughly five years; that setup alone is not evidence of profitability. The stated limitations include lagging signals, false crosses in consolidating markets, drawdowns during abrupt reversals, and sensitivity to parameter choices. Suggested refinements include volume or volatility filters, trend strength measures, and stop-loss or take-profit rules.
Key ideas
- A fast and intermediate EMA crossover supplies the entry signal, while a long-term EMA determines the allowed trend direction.
- Long entries require both shorter EMAs above the filter; short entries require both below it.
- Opposite fast and slow EMA crosses close open positions.
- Lag, ranging markets, sudden reversals, and parameter sensitivity are identified as key risks.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.