AlphaTrend Crossover Strategy with RSI or MFI Filtering

Summary

This TradingView strategy turns the AlphaTrend indicator into long and short entries for backtesting. It builds a trailing line from the bar’s high or low and a smoothed true-range measure, using a configurable multiplier and period. The direction rule is based on whether MFI is at least 50, or RSI when the no-volume option is selected; the line is constrained by its prior value to track the prevailing direction.

A buy occurs when AlphaTrend crosses above its value from two bars earlier, and a sell occurs on the reverse crossover. The published setup applies it to BTC/USDT futures on Binance over a daily chart interval, with a one-hour base period, from August 2021 to August 2022. No performance results are reported, so the settings do not establish profitability. The description suggests daily and four-hour use while allowing other intervals to be optimized; the source also leaves the multiplier and period configurable, making out-of-sample testing and sensitivity checks important.

Key ideas

• AlphaTrend compares its current value with the value from two bars earlier to generate directional crossover signals.
• The indicator uses MFI around a 50 threshold by default and can switch to RSI when volume data is unavailable.
• Its line is derived from true range, a configurable period, a multiplier, and the current bar’s high and low.
• The published BTC/USDT futures configuration gives test dates and intervals but no performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.