EMA-Smoothed RSI Signals with ATR Stops and Targets
Summary
This strategy smooths a relative strength index with an exponential moving average and uses crossings of the conventional 30 and 70 levels to trigger long or short positions. An average true range value, scaled by a configurable multiplier, sets stop and target distances from the entry price. The script also counts crossings and displays recent signal prices in a table. The listed defaults use 14-period RSI, smoothing, and ATR calculations, with a multiplier of one.
The document describes the method and includes a BTC/USDT futures daily backtest configuration spanning several years, but gives no results or performance metrics. Its prose characterizes the approach as multi-timeframe, though the supplied code uses chart-timeframe calculations. RSI crossings can produce false signals, and ATR distances depend on volatility and multiplier choice. The text also notes that parameter tuning can overfit and that trend and ranging conditions may produce different behavior.
Key ideas
- An EMA smooths RSI before signals are evaluated.
- Crossings of the 30 and 70 levels trigger long or short entries in the source code.
- ATR multiplied by a configurable factor sets both stop and target distances.
- A table records crossing counts and associated prices for monitoring.
- The published daily BTC/USDT futures configuration has no accompanying performance results.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.