Strategy Title: Crypto Trend Rider (EMA + RSI + ADX)
A Trend-Following Strategy for Cryptocurrencies with Built-In Risk Management
Strategy Overview
This strategy combines EMA crossovers, RSI momentum, and ADX trend strength to identify high-probability entries in trending crypto markets. It uses ATR-based exits to adapt to volatility, making it ideal for assets like Bitcoin (BTC) or Ethereum (ETH).
Key Features
Multi-Indicator Synergy:
EMA Crossover: 20-period and 50-period EMAs detect trend direction.
RSI Momentum: Confirms bullish/bearish strength (RSI > 50 or < 50).
ADX Filter: Ensures trades align with strong trends (ADX ≥ 20).
Volatility-Adaptive Exits:
Take Profit (TP): 2x ATR from entry price.
Stop Loss (SL): 1x ATR from entry price.
Visual Clarity:
Buy/Sell Labels: Clear arrows below/above bars.
TP/SL Lines: Plotted directly on the chart.
Indicator Plots: EMAs and ADX strength displayed for transparency.
How It Works
Entry Conditions
Long Entry:
EMA 20 crosses above EMA 50 (bullish trend).
RSI > 50 (positive momentum).
ADX ≥ 20 (strong trend confirmed).
Short Entry:
EMA 20 crosses below EMA 50 (bearish trend).
RSI < 50 (weak momentum).
ADX ≥ 20.
Exits
Take Profit: Closes positions at 2x the ATR to capture volatile moves.
Stop Loss: Protects against sudden reversals (1x ATR).
How to Use
Apply to Crypto Pairs: Test on BTC/USDT, ETH/USDT, etc.
Timeframes: Best on 1-hour (1H) or 4-hour (4H) charts.
Customization: Adjust inputs (e.g., adxThreshold, tpMultiplier).
Backtest: Use TradingView’s Strategy Tester to refine parameters.