CMARSI Trend Signals with Connors RSI and Moving Averages

Summary

The document describes a trend-following method combining Connors RSI with a short moving average. Connors RSI averages a 3-day RSI, a 2-day RSI of up/down streaks, and a 100-day ROC percentile. The stated signal uses the indicator’s 40 and 70 thresholds together with a 2-day average crossover to enter long or exit. The published backtest settings specify BTC/USDT futures over roughly one year, but provide no performance results.

The article presents the indicator combination as a way to filter noisy signals, and proposes tuning parameters, trying other averages, adding confirmations, and using stop or trailing-stop rules. It flags poor behavior in ranging markets, stop placement, and overfitting as risks. There is a discrepancy between the prose and source: the source enters when the moving average crosses above 40 and issues an exit when it crosses below 70, without implementing the described crossover combination. No evidence is given to establish profitability, and the backtest setup alone does not show how the method performed.

Key ideas

• Connors RSI combines a short RSI, an up/down streak RSI, and a ROC percentile.
• The article describes a 2-day moving average and RSI threshold conditions for trading.
• The published backtest settings identify a BTC/USDT futures test but report no results.
• Ranging markets, stop placement, and parameter overfitting are cited as risks.
• The source’s trading conditions differ from the strategy rules described in the prose.

Tags

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