Daily Bitcoin Trend Following with Moving Averages, RSI, ADX, and ATR Stops

Summary

This daily trend-following approach seeks long exposure when price is above both a 200-day simple moving average and an exponential moving average intended to approximate a 21-week period. RSI above 50 and ADX above 25 act as optional momentum and trend-strength filters. The stated risk framework uses an ATR-based stop and a percentage profit target. The published parameter set specifies a 14-period ATR, a multiplier of 2, and a 10% take-profit level. The backtest settings identify BTC/USDT futures and a daily timeframe, but the document gives no resulting performance statistics.

The method may filter some weak signals, but its moving-average conditions can lag and generate whipsaws in ranging markets. The document notes that filters may also keep the strategy out of some trades, ATR stops can become wide during volatile periods, and a fixed target may cut strong trends short. There is a further implementation caveat: the supplied strategy call places its stop and limit values on the entry order, while the prose describes them as stop-loss and take-profit controls; the written description alone does not establish how these orders behave in practice.

Key ideas

• A long bias requires price to exceed both a long-term simple average and an exponential average approximating a 21-week period.
• RSI and ADX thresholds can be enabled to filter for positive momentum and stronger trends.
• The proposed risk controls combine an ATR-based stop with a fixed percentage profit target.
• The daily BTC/USDT futures setup has no reported backtest results in the document.
• Moving-average lag, range-bound whipsaws, wide volatility-based stops, and early profit taking are stated limitations.

Tags

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