Combining Vortex Crossovers and TSI for Trend Following

Summary

This strategy combines the Vortex Indicator’s positive and negative lines with the True Strength Index and its signal line. It opens a long position when the positive Vortex line crosses above the negative line at the same time that the TSI crosses above its signal line. The reverse pair of simultaneous crosses opens a short position. The document describes the approach as a way to confirm medium- to long-term trend signals with two indicators and includes adjustable smoothing and indicator periods.

Despite the prose referring to exits when a trend ends, the implementation closes positions after a configurable number of bars when the corresponding entry signals recur with a delay; the default is one bar. This makes the actual holding and exit behavior important to inspect before interpreting the strategy as a conventional trend exit. Backtest settings specify BTC-USDT Binance futures, hourly bars, and a one-month window, but no performance statistics are reported. Risks noted include whipsaws in range-bound markets, false signals, and capital tied up by longer holding periods.

Key ideas

• A long entry requires simultaneous upward crossovers in the Vortex lines and TSI lines.
• A short entry requires simultaneous downward crossovers in both indicators.
• The implementation’s close rule references delayed entry signals rather than an explicit trend reversal signal.
• The document warns that whipsaws and false signals remain possible despite the dual-indicator filter.
• Backtest settings are provided, but the document reports no performance statistics.

Tags

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