ATR Activity Filter with RSI Threshold Entries

Summary

This strategy combines ATR as a volatility activity filter with RSI as the trade signal. ATR measures the range of price movement rather than its direction; the method compares current ATR with a recent ATR average and only considers entries when ATR is higher. RSI readings below 30 prompt a buy signal, while readings above 70 prompt a sell signal. The implementation tracks the last RSI signal to avoid repeating the same direction, cancels pending orders before placing a new one, and uses limit orders offset from the latest price.

The published settings describe a 15-minute BCH-USDT market on Huobi across roughly one year, but provide no performance results. The document does not specify a clear exit rule or comprehensive position sizing. The code also appears to divide its ATR average by the ATR period rather than the averaging period, which may distort the activity filter. As written, the filter can be understood as selecting higher-volatility conditions for RSI threshold trades, but the claim that this means a trend is strengthening is not established by the method itself.

Key ideas

• ATR measures volatility magnitude and does not indicate whether price is rising or falling.
• The strategy enables RSI signals when the latest ATR exceeds its recent average.
• RSI below 30 signals a buy, while RSI above 70 signals a sell.
• A remembered signal state suppresses repeated same-direction entries.
• The ATR averaging implementation may use the wrong divisor, and no exit rule is clearly described.

Tags

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