Dual SMA Trend Signals with RSI Entry and Exit Rules

Summary

This strategy combines two simple moving averages (SMAs) with the relative strength index (RSI). The short SMA is compared with the long SMA to define direction: the strategy enters long when the short average is above the long average and RSI is below 30, and enters short when the short average is below the long average and RSI is above 70. It closes long positions when RSI rises above 70 and short positions when RSI falls below 30. The stated defaults are 10 and 50 periods for the moving averages and 14 for RSI.

The document describes percentage-based position sizing and recommends stop losses, volatility-aware sizing, and filters for trend strength. Its published backtest settings specify BTC/USDT futures and a short date range, but provide no results or evidence for the claims of improved success or stable returns. The rules can also conflict with the behavior of RSI during strong trends, while moving-average signals lag and fixed parameters may not fit different conditions. The account sizing description should be treated cautiously: the source shown does not explicitly set the stated 10 percent allocation.

Key ideas

• The short and long SMAs provide directional context for the strategy’s entries.
• A long entry requires the short SMA above the long SMA and RSI below 30; a short entry requires the reverse alignment and RSI above 70.
• RSI crossing above 70 closes a long, while falling below 30 closes a short.
• The described risks include false signals in ranges, lagging averages, and RSI remaining extreme during strong trends.
• The document reports backtest settings but no performance results, and its stated 10 percent allocation is not explicit in the displayed source.

Tags

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