Combining RSI Thresholds with Supertrend Direction for Entries and Exits

Summary

This strategy combines the Relative Strength Index (RSI) with Supertrend to define directional entries and exits. It opens a long position when RSI crosses above 58 while price is above a green Supertrend, then closes the long if RSI falls below 50 and Supertrend turns red. It opens short when RSI crosses below 38 with a red Supertrend and closes short when RSI rises above 45 with a green Supertrend. The stated defaults are a 14-period RSI and a Supertrend using length 10 and multiplier 3.

The document presents the method as a way to pair momentum thresholds with a trend filter, but supplies no measured returns or risk statistics. The published backtest settings specify BTC/USDT futures over a short interval, while the code also contains a separate date range; neither provides results to assess. The described caveats are frequent signals and costs in oscillating markets, conflicting indicators, and sensitivity to fixed parameters. Stop losses, position sizing, parameter evaluation, and monitoring are suggested for further work.

Key ideas

• Long entries require RSI above 58 and price above the Supertrend line.
• Short entries require RSI below 38 and price below the Supertrend line.
• RSI thresholds of 50 and 45, combined with Supertrend direction changes, govern long and short exits.
• The method can trade frequently in sideways markets and may incur elevated costs.
• No performance evidence is provided to establish profitability.

Tags

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