WaveTrend Crossovers with Higher-Timeframe EMA and Secondary Stops

Summary

This strategy uses the WaveTrend oscillator to generate entries and exits, with optional direction filtering from an EMA calculated on a selected timeframe. Long entries follow a WT1 crossover above WT2 near the oversold region, and exits follow a bearish crossover near the overbought region; short rules reverse the direction. The implementation also offers a percentage-based secondary stop and a mode for long-only, short-only, or both directions. Parameters and a short BTC/USDT futures backtest setup are provided.

The document describes multiple take-profit levels, but the included source does not implement partial targets or multiple take-profit orders; its exits are oscillator-based, with the optional secondary stop. No performance results are reported, so claims about win rate, stability, or profit capture are unsupported. The strategy may overtrade in noisy conditions, and the described EMA filter is optional and disabled by default. Its behavior and risk depend on parameter choices, market, timeframe, and execution assumptions, all of which require independent testing.

Key ideas

• WaveTrend crossovers near oscillator extremes define the principal entry and exit signals.
• An optional higher-timeframe EMA filter can restrict trades by price direction.
• The source includes a configurable secondary percentage stop and trade-direction modes.
• Despite the description, the source does not show multiple take-profit orders.
• The document provides no performance evidence for the strategy.

Tags

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