Bitcoin TSI Crossover Strategy with an RSI Direction Filter

Summary

This short-term Bitcoin strategy uses the True Strength Index (TSI), calculated by double-smoothing price changes and their absolute values, to measure directional strength. A TSI crossover of its signal line generates a long or short signal. The accompanying description proposes filtering longs to periods when RSI is above 50 and shorts to periods when RSI is below 50.

The document includes TSI and signal parameters and published BTC/USDT futures backtest settings, but gives no performance results. The source code shows crossover entries and displays RSI-based chart conditions, while its actual entry calls use the crossovers directly; therefore, the described RSI filter is not clearly enforced in those entries. The document identifies lag, missed signals from filtering, trading costs, and slippage as limitations. Higher-timeframe direction, stop design, and parameter validation are suggested areas for further work.

Key ideas

• TSI compares smoothed price changes with smoothed absolute changes to represent directional strength.
• Crossovers of TSI and its signal line generate long and short entries.
• The written rules use RSI above or below 50 as a directional filter, though the source entries do not clearly apply it.
• Lag, filtering effects, transaction costs, and slippage can reduce the strategy's usefulness.

Tags

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