Gaussian Channel Breakouts Confirmed by Stochastic RSI

Summary

This long-only strategy combines a multi-pole Gaussian filter with a channel based on filtered true range and a Stochastic RSI signal. It enters when the filter is rising, the close is above the upper channel, and the Stochastic RSI %K is above %D. It exits when price crosses back below the upper channel, which the accompanying description characterizes as a trailing exit. The filter period, pole count, channel multiplier, lag and fast-response modes, RSI inputs, and test dates are adjustable.

The material provides the rule set and implementation, but no backtest results or other performance evidence. Although the description suggests use on several timeframes and trending assets, it does not show that the method works across them. The strategy is long-only, and actual behavior depends on parameter choices, instrument, timeframe, and execution assumptions; the script specifies commission and slippage settings but does not discuss their impact.

Key ideas

• A rising Gaussian filter defines the required bullish trend state.
• A close above the filtered true-range upper band supplies the breakout condition.
• Stochastic RSI confirms entry when its %K line is above %D.
• The position closes on a cross back below the upper channel.
• The document gives no performance results and describes only long trades.

Tags

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