Combining RSI Momentum Regimes with SuperTrend Direction Filters
Summary
This dual-direction strategy combines RSI’s momentum regime with SuperTrend as a price-based trend filter. RSI above 50 signals strength and RSI below 50 signals weakness. The stated default settings use a 14-period RSI and a SuperTrend with length 10 and multiplier 2. Long entries require strong RSI and an upward break through SuperTrend; short entries require weak RSI and a downward break. Position exits combine a change in RSI regime with a SuperTrend price condition, and the settings allow long-only or short-only trading.
The document lists a published BTC/USDT Binance futures backtest configuration using daily strategy bars with hourly base data from January to November 2023, but gives no performance results. It also describes configurable take-profit, stop-loss, order sizing, and signal options, so implementation behavior can vary with settings. The text cautions that RSI can produce false signals, poorly matched indicator parameters can delay or miss trades, and sharp moves can trigger stops quickly. It recommends testing parameter combinations by market and timeframe and considering additional filters, while offering no evidence that these changes improve results.
Key ideas
- RSI above or below 50 defines the strategy’s bullish or bearish momentum regime.
- SuperTrend supplies the price breakout condition for entering in the regime’s direction.
- Exits combine a momentum regime change with a SuperTrend price condition.
- The settings support long-only and short-only modes and configurable risk and order sizing.
- A backtest configuration is provided, but no performance results are reported.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.