Dow-Adjusted RSI or MFI Signals with a Sideways-Market Exit

Summary

This strategy starts with either RSI or MFI as a measure of directional strength, then adjusts the bullish and bearish readings using a Dow-inspired factor: the correlation between price and volume over a configurable lookback. It derives adjusted bull, bear, and stagnant-market proportions. Crossings of the adjusted value around 50 trigger long or short entries, while a stagnant-market condition closes positions. The code’s default indicator period is 5, with displayed oversold and overbought levels of 25 and 75.

The description reports a favorable backtest in general terms, but the supplied BTC/USDT futures settings cover only a limited period and provide no numerical results or metrics. The code’s trade exits on stagnation, while the text also refers more broadly to taking profits or sideways conditions; it does not specify a distinct profit target or volatility-based stop. Results could depend heavily on parameter choices and available history, and the document acknowledges that the stop logic needs further refinement.

Key ideas

• The method lets users choose RSI or MFI to estimate bullish and bearish market strength.
• A price-volume correlation factor adjusts the indicator-derived directional readings.
• Crossings of the adjusted value around 50 trigger entries, while a dominant stagnant-market reading closes positions.
• The default period is 5, and the displayed oversold and overbought levels are 25 and 75.
• The brief published backtest settings provide no numerical evidence, and the code does not define a separate volatility-based stop.

Tags

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