Tri Trendmaster

📘 Summary

📚 Details

The Tri Trendmaster combines three very common indicators and creates high-quality signals based on it. However, contrary to many other strategies it uses the EMA as final signal creator and the MACD as status indicator.

Required Indicators

To kickstart this strategy, you will need three key indicators (well, actually four — however, we use the Exponential Moving Average in two different ways):

• Exponential Moving Average 50 (moving average of the last 50 data points)
• Exponential Moving Average 200 (moving average of the last 200 data points)
• Moving Average Convergence Divergence (MACD): This indicator tracks the relationship between two EMAs of a token’s price, pinpointing potential buy and sell opportunities. In context of this strategy, the MACD gives the final buy/sell signal.
• Relative Strength Index (RSI): A momentum oscillator that measures the speed and change of price movements, identifying overbought (>70) or oversold (<30) conditions.

Chart Timeframes

This strategy is versatile across several chart timeframes, including 15M, 1H, 4H, and daily charts. However, backtests have shown that hourly and daily charts yield the best results.

Entry Signals

Let’s have a look at the entry signals. The strategy provides a clearly defined entry signal for both long and short trades. However, it is important to make sure that all criteria are met before opening a trade!

Long Entry Signal

Short Entry Signal

Obviously, the short entry is the opposite in terms of indicators.

Exit Signal

When it comes to the exit signals, you can have more flexible approaches. However, make sure to define your exit strategy before you enter the trade.

Here are two options:

• Set fixed Stop-Loss/Take-Profit levels (e.g., 1% and 3%). You can backtest the best levels before executing your trade (Crypto OS offers a straightforward feature to backtest your strategies).
• Use the RSI and close the trade once the price reaches overbought (>70) (long signal) or oversold (<30) (short signal) territories.
• You can also use the EMA as exit signal and close the trade once the EMA50 crosses the EMA200 again.

Backtest Results

As already mentioned, the amount of signals is usually limited for the Tri Trendmaster. However, backtests have shown that, depending on token, markets, and attributes, success rates of >90% are possible.

How To Apply The Strategy?

All indicators required for this strategy are available on TradingView, making it accessible for traders at all levels.

For those looking for a more direct approach, Crypto OS offers this strategy as a pre-defined signal for more than 200 crypto tokens, simplifying the process even further.