Vegas Wave Trend Signals from 144-, 169-, and 233-Period EMAs

Summary

The Vegas trend wave method uses 144-, 169-, and 233-period exponential moving averages to assess direction. It compares the price and shorter EMAs with the 233-period EMA using percentage differences. A long is opened when all three differences exceed their configured positive thresholds. A short condition requires price below all three averages and the 144-period EMA at or below the 233-period EMA; the source code only submits that short entry when a position is already open.

The document presents the multiple-average combination as a way to filter false breaks and describes it as suited to trending markets. It cautions that EMAs lag, wave-based interpretation may be subjective, and results depend on parameter choices. The published backtest configuration covers a brief BTC-USDT futures interval at one-minute resolution, but no performance statistics are supplied. The entry logic shown does not specify explicit stop-loss or profit-taking rules, so the description is not a complete risk-management plan.

Key ideas

• The strategy uses three long-period EMAs and price-to-EMA percentage differences to define a long setup.
• A short condition combines price below the averages with the 144-period EMA below or equal to the 233-period EMA.
• Multiple averages are intended to filter signals compared with relying on one average.
• EMA lag, parameter dependence, and subjective wave interpretation are stated limitations.
• The published configuration gives no performance statistics or explicit stop and target rules.

Tags

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