Combining Moving Average, RSI, and MACD Signals with Risk Controls

Summary

This strategy combines a 50-day and 200-day simple moving average crossover for trend direction with RSI and MACD conditions for momentum confirmation. A long setup requires the fast average to cross above the slow average, RSI to remain below its overbought level, and MACD to cross upward; the short setup uses the opposite average and MACD crosses with an RSI oversold filter. The stated defaults include RSI thresholds of 70 and 30, alongside a 2% stop loss, 4% profit target, and 1% trailing stop.

The document explains the intended benefit of requiring agreement among indicators and includes a Pine implementation and an ETH/USDT backtest configuration, but provides no performance evidence. It notes lag, false signals in sideways markets, overfitting from parameter tuning, and transaction costs as limitations. There are also inconsistencies between the prose and code: the short RSI filter and trailing stop logic may not express the described intent, so the implementation warrants careful review before use.

Key ideas

• The strategy uses a 50-day and 200-day moving average crossover to identify trend changes.
• RSI and MACD conditions are added to confirm momentum before entries.
• The described risk settings are a 2% stop, 4% profit target, and 1% trailing stop.
• Moving average lag and sideways-market whipsaws are identified as key risks.
• The prose and code contain logic inconsistencies that should be checked before deployment.

Tags

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