Dual MACD and RSI Filters for Trend-Following Entries

Summary

This strategy combines two MACD calculations with an RSI filter to generate directional entries. It uses MACD settings of 10/22/9 and 21/45/20, then requires both MACD differences to agree: positive for a long entry and negative for a short entry. RSI uses a 14-period lookback, with a ceiling of 70 for longs and a floor of 20 for shorts. The published implementation calculates one MACD from closing prices and the other from opening prices, and calculates RSI from opening prices.

The document argues that requiring agreement between the MACDs may filter some signals, while RSI screens entries by overbought or oversold conditions. It supplies no performance statistics; its backtest setup covers a short BTC/USDT futures interval. Risks include delayed entries, missed reversals, market-dependent parameters, and premature signals. The source code shows entry rules but no explicit exit or stop-loss logic, despite the prose recommending further testing and risk controls.

Key ideas

• A long entry requires both MACD differences to be positive and RSI below its overbought threshold.
• A short entry requires both MACD differences to be negative and RSI above its oversold threshold.
• The implementation applies the two MACDs to different price inputs and calculates RSI from the open.
• The document provides no performance results and describes the backtest setup over a limited period.
• Delayed confirmation, parameter sensitivity, and missing explicit exit rules are practical limitations.

Tags

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