Combining Chande Momentum and Smoothed RSI Indicators for Trade Signals

Summary

This experimental strategy combines Chande Momentum with several smoothed RSI variants and the Relative Momentum Index. A long signal requires Chande Momentum to cross above its buy threshold while each other indicator remains below its own buy threshold. A short signal uses the opposite conditions: Chande crosses below its sell threshold and the other indicators exceed their sell thresholds. The method is intended to seek trend turning points through agreement across momentum measures.

The document describes indicator formulas, configurable thresholds, and a BTC/USDT futures backtest setup over a short historical window, but gives no performance results. The source uses zero as the default for the indicator boundaries, so the practical behavior depends heavily on user-selected thresholds. It also has no stop-loss or position-sizing rules. The notes flag sparse signals, timeframe sensitivity, and curve-fitting risk, and suggest broader testing, parameter searches, trend filters, and risk controls; these are proposals rather than validated improvements.

Key ideas

• A Chande Momentum threshold crossover initiates the signal check.
• Other momentum and RSI-derived indicators must simultaneously satisfy their respective threshold conditions.
• The strategy aims to filter signals through agreement among several indicators.
• The document provides no performance evidence and identifies missing risk controls and limited backtesting as key caveats.

Tags

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