Combining MACD Momentum Crosses with RSI Thresholds

Summary

This strategy combines MACD momentum and RSI thresholds to generate directional trades. It calculates the difference between the MACD line and its signal line, then uses a zero-line cross as the momentum trigger. The described rules pair an upward cross with RSI moving above its overbought threshold for a long entry, and a downward cross with RSI moving below its oversold threshold for a short entry.

The document supplies configurable indicator settings and a sample BTC/USDT futures backtest period from August to September 2023, but it gives no performance results. It also acknowledges important omissions: there is no stop loss or position-sizing rule, so losses and exposure are not controlled by the stated system. The source conditions specifically require RSI to cross its threshold at the same time as the MACD difference crosses zero, which may yield fewer entries than a rule based simply on RSI being beyond a threshold. Parameter testing, trend filters, and explicit risk controls are proposed, but their effectiveness is not demonstrated.

Key ideas

• The MACD line minus its signal line serves as a momentum measure, with zero crosses defining direction.
• The described long and short triggers combine MACD crosses with RSI threshold crosses.
• The settings include MACD periods and RSI overbought and oversold levels.
• The strategy has no stated stop loss or position-sizing method.
• Published backtest settings provide a test window but no results.

Tags

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