Bollinger, RSI, and OBV Filters for Trend Following

Summary

This trend-following approach combines price location, momentum, and volume confirmation. It uses a 20-period Bollinger Band basis and two-standard-deviation bands, a 14-period RSI, and the direction of a 10-period exponential moving average of OBV. A long entry requires price above the Bollinger basis, RSI above 50, and rising OBV trend; the stated exit is a close below the lower band.

The document gives published settings for a one-hour BTC_USDT futures backtest spanning roughly a year, but it provides no performance statistics or trade analysis. The strategy is long-only as described, with no explicit short-entry rule. It warns that sideways conditions can generate repeated losses, reversals can cause drawdowns, sharp declines can incur slippage, and volume data may be unreliable in some markets. Suggested extensions include market-regime filters, stop losses, modified exits, and volatility adaptation; these are proposals rather than evaluated improvements.

Key ideas

• A long entry requires price above the Bollinger basis, RSI above 50, and an upward OBV trend.
• The stated exit occurs when price closes below the lower Bollinger Band.
• The document describes a long-only trend-following method and gives no short-entry rule.
• Published backtest settings are provided, but no performance results are reported.
• Choppy markets, reversals, slippage, and unreliable volume data are identified as risks.

Tags

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