Bitcoin Momentum Signals from Volatility, ATR Stops, and RSI

Summary

This Bitcoin strategy combines an ATR-based volatility stop, a volatility measure built from the distance between recent highest closes and the current low, and RSI. Its long entry occurs when the volatility measure crosses below its upper band while price remains above the volatility stop. Short entries are triggered by RSI crossing below either of two configured thresholds. The script also allows a date range and a direction setting for restricting entries.

The document presents rules and indicator definitions, and describes the system as a quantitative momentum strategy for BTC on a 12-hour chart. It provides no strategy report or performance statistics, so profitability and robustness cannot be assessed from the material. The two RSI thresholds are both set to the same default value, making the two short conditions redundant unless changed. The settings, market, and historical test window may materially affect results; the listed backtest dates are configurable rather than evidence of performance.

Key ideas

• The long setup requires a downward cross of the volatility measure below its upper band while price is above the ATR stop.
• The short setup uses RSI crossing below either of two configurable thresholds.
• An ATR trailing stop acts as a trend filter for long entries.
• The script includes controls for date range and permitted trade direction.
• No performance statistics are supplied, and the two RSI thresholds share the same default.

Tags

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