Trend FollowingStrategy

Developed a trend-following trading strategy

that generates Buy and Sell signals

using EMA crossovers and RSI.

This system identifies market trends

and executes trades based on confirmed momentum signals.

Trend Following Strategy

Core Strategy Logic

Phase 1: Market Analysis

  • •Analyze historical price data for identified trends
  • •Calculate 50-day and 200-day Exponential Moving Averages (EMA)
  • •Monitor Relative Strength Index (RSI) for overbought/oversold conditions

Phase 2: Signal Generation

  • •Generate Buy signal when 50-day EMA crosses above 200-day EMA
  • •Generate Sell signal when 50-day EMA crosses below 200-day EMA
  • •Confirm signals with RSI below 30 (oversold) for Buy or above 70 (overbought) for Sell

Phase 3: Trade Execution

  • •Execute trades only when both EMA crossover and RSI conditions are met
  • •Set stop-loss at 2% below entry for Buy, 2% above entry for Sell
  • •Take profit at 5% gain or when opposite signal is generated
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Trend Rider