This strategy calculates the exponential moving average (EMA) of fast and slow periods, plots them on the chart, and monitors crossovers in real-time to determine trend reversals. Trading signals are formed by incorporating the RSI oscillator to avoid false signals. A buy signal is generated when the fast EMA crosses above the slow EMA. A sell signal is generated when the fast EMA crosses below the slow EMA.
The strategy has a clear logic using EMA crossovers to determine trend reversal, filtered by RSI to capture mid- to long-term trends. However, optimization of EMA/RSI parameters and stop loss, as well as the risk of missing reversals and failure in volatile markets remain. With tuned parameters and risk controls, it could serve to identify turning points and formulate investment decisions.
/*backtest start: 2022-12-18 00:00:00 end: 2023-12-24 00:00:00 period: 1d basePeriod: 1h exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}] */ //@version=5 strategy("Trend Change with EMA Entry/Exit - Intraday", overlay=true) // Define the fast and slow EMA periods fast_ema_period = input(10, title="Fast EMA Period") slow_ema_period = input(50, title="Slow EMA Period") // Calculate the EMAs ema_fast = ta.ema(close, fast_ema_period) ema_slow = ta.ema(close, slow_ema_period) // Plot the EMAs on the chart plot(ema_fast, title="Fast EMA", color=color.blue, linewidth=2) plot(ema_slow, title="Slow EMA", color=color.orange, linewidth=2) // Detect trend changes (crossovers and crossunders) is_uptrend = ta.crossover(ema_fast, ema_slow) is_downtrend = ta.crossunder(ema_fast, ema_slow) // Relative Strength Index (RSI) rsi_length = input(14, title="RSI Length") overbought_level = input(70, title="Overbought Level") oversold_level = input(30, title="Oversold Level") rsi_value = ta.rsi(close, rsi_length) // Trend Filter is_trending = ta.change(is_uptrend) != 0 or ta.change(is_downtrend) != 0 // Entry and Exit signals enter_long = is_uptrend and rsi_value < overbought_level and is_trending exit_long = is_downtrend and is_trending enter_short = is_downtrend and rsi_value > oversold_level and is_trending exit_short = is_uptrend and is_trending strategy.entry("Buy", strategy.long, when=enter_long) strategy.close("Buy", when=exit_long) strategy.entry("Sell", strategy.short, when=enter_short) strategy.close("Sell", when=exit_short)