Using 13-, 30-, and 100-Period EMAs for Trend Signals
Summary
This document describes a trend-following strategy that combines short-, medium-, and long-period exponential moving averages. It enters long when the 13-period EMA crosses above the 30-period EMA while both are above the 100-period EMA. A bearish cross with both shorter averages below the 100-period EMA triggers a sell signal; the accompanying source code closes the long and opens a short position.
The article explains the intended benefit of requiring agreement across several averages, while noting that EMA signals lag and can whipsaw in sideways markets. It suggests adding momentum or volume confirmation, stop rules, regime filters, and parameter testing. The published settings specify a BTC/USDT futures backtest over roughly one month, using hourly bars and a 15-minute base period, but no performance results are provided. The rules therefore describe a testable framework rather than evidence of profitability; the document also leaves position sizing and execution assumptions unspecified.
Key ideas
- A long signal requires the 13-period EMA to cross above the 30-period EMA while both are above the 100-period EMA.
- A bearish cross with both shorter averages below the 100-period EMA closes the long and opens a short in the supplied rules.
- Using a long-period average as a trend filter may screen some countertrend signals but cannot eliminate false crosses.
- The article identifies lag and choppy markets as risks and proposes additional filters and stop rules.
- Published backtest settings identify the market and timeframes, but the document reports no performance results.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.