Multi EMA Moving RSI Strategy

This strategy combines multiple moving averages with the RSI for trades. It goes short when a faster EMA crosses below a slower EMA, confirmed with RSI oversold. The logic is: 1. Calculate 4 EMAs of differing…

Pine ScriptMean reversion Trend following RSI EMA

Author: ChaoZhang
Complexity: Starter · 75 lines
Parameters: 5
Backtest bar: 3h · intraday
Tested on: BTC/USDT · futures

Jump to code View in vault Original on FMZ

Strategy Logic

This strategy combines multiple moving averages with the RSI for trades. It goes short when a faster EMA crosses below a slower EMA, confirmed with RSI oversold.

The logic is:

Calculate 4 EMAs of differing periods, e.g. 9, 26, 100 and 55 periods
A short signal triggers when 9-period EMA crosses below 26-period EMA
Activate short only if RSI below threshold (e.g. 40) to avoid oversold bounce
After short entry, exit when price crosses above 55 or 100 EMA
Different EMA combinations can be set for parameter optimization

The strategy utilizes multiple EMAs for trend and adds RSI for signal confirmation, going short at oversold levels.

Advantages

Multiple EMAs improve accuracy
RSI avoids oversold bounce risk
Faster EMA for entry, slower for stop loss

Risks

Extensive testing needed to find optimal parameters
Careful evaluation of RSI parameters
SHORT only, so long opportunities missed

Summary

This strategy combines the power of multiple EMAs with RSI confirmation and filtering. Parameter optimization and stop loss are critical. But being SHORT-only is a key limitation.

Parameters

Name	Default	What it controls
v_input_int_1	9	EMA_L
v_input_int_2	26	EMA_L2
v_input_int_3	100	EMA_S
v_input_int_4	55	EMA_S2
v_input_int_5	5	RSI

Source Pine Script

/*backtest
start: 2023-08-14 00:00:00
end: 2023-09-13 00:00:00
period: 3h
basePeriod: 15m
exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}]
*/

// This source code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © YukalMoon

//@version=5
strategy(title="EMA SCALPEUR", overlay=true, initial_capital = 1000)


//// input controls

EMA_L = input.int (title = "EMA_L", defval = 9, minval = 1, maxval = 100, step =1)
EMA_L2 = input.int (title = "EMA_L2", defval = 26, minval = 1, maxval = 100, step =1)
EMA_S = input.int (title = "EMA_S", defval = 100, minval = 1, maxval = 100, step =1)
EMA_S2 = input.int (title = "EMA_S2", defval = 55, minval = 1, maxval = 100, step =1)
RSI1 = input.int (title = "RSI", defval = 5, minval = 1, maxval = 20 , step = 1)

/// mise en place de ema

RSI = ta.rsi(close, RSI1)

shortest = ta.ema(close, 9)
short = ta.ema(close, 26)
longer = ta.ema(close, 100)
longest = ta.ema(close, 55)

plot(shortest, color = color.red)
plot(short, color = color.orange)
plot(longer, color = color.aqua)
plot(longest, color = color.yellow)

plot(close)

//// trading indicators

EMA1 = ta.ema (close,EMA_L)
EMA2 = ta.ema (close,EMA_L2)
EMA3 = ta.ema (close, EMA_S)
EMA4 = ta.ema (close, EMA_S2)


//buy = ta.crossover(EMA1, EMA2) and RSI > 60 and RSI <70
sell = ta.crossunder(EMA1, EMA2) and RSI > 40

//buyexit = ta.crossunder(EMA3, EMA4)
sellexit = ta.crossover(EMA3, EMA4)

/////strategy


strategy.entry ("short", strategy.short, when = sell, comment = "ENTER-SHORT")


///// market exit


strategy.close ("short",  when = sellexit, comment = "EXIT-SHORT")

Published by ChaoZhang on the FMZ strategy square · last modified 2023-09-14. Collected in the Quant Trading Vault. Unvalidated research: re-test with your own data and costs before trusting it.

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