Combining RSI Thresholds with Moving Average Trend Signals

Summary

This strategy pairs a 14-period RSI with configurable short and long moving averages. A long entry requires RSI above its overbought threshold and price and moving-average alignment consistent with an upward trend. The strategy closes that long when the moving averages cross in the specified direction, or when the enabled average crosses price. The moving average type can be EMA, SMA, HMA, or WMA. Stochastic RSI is also calculated, but its threshold alerts are displayed as chart markers rather than used for trading decisions.

The document includes a BTC futures backtest configuration but reports no performance statistics, so it does not substantiate claims about effectiveness. It notes that RSI and moving averages can lag, that parameters can shift signal timing, and that the rules lack stop-loss and position-sizing controls. It proposes signal filtering and added risk management as possible improvements. The described rule set is long-only and does not provide a short-entry mechanism.

Key ideas

• Long entries require an overbought RSI reading together with price and enabled moving-average alignment.
• The strategy can use EMA, SMA, HMA, or WMA and allows separate short and long average lengths.
• Moving-average crosses and selected price crosses trigger closure of the long position.
• Stochastic RSI events are shown as chart alerts and do not drive actual orders.
• The document gives backtest settings but no reported results, and it identifies lag and missing risk controls as limitations.

Tags

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