Gaussian Channel Entries Filtered by Stochastic RSI

Summary

This strategy combines a smoothed Gaussian price channel with a stochastic oscillator and uses their levels for entries and exits. The channel is formed around a recursively smoothed midpoint, with upper and lower bands offset by a percentage multiplier. A long entry occurs when price crosses back above the lower band while both oscillator lines are oversold; a short entry occurs when price crosses below the upper band while both are overbought. Positions close at a midpoint cross or when the oscillator reaches the opposite extreme.

The document gives default channel and oscillator settings and lists a brief ETH/USDT hourly backtest window, but it reports no returns, drawdowns, or other measured results. Although the text calls the filter Stochastic RSI, the included calculation uses a stochastic calculation on price data, so the implementation does not match that description. Smoothing can delay signals, and the document warns of whipsaws in sideways markets, parameter sensitivity, and losses during reversals. It suggests testing settings and adding volatility-aware parameters or risk controls.

Key ideas

• The system pairs a smoothed Gaussian midpoint and percentage-width bands with oscillator thresholds.
• Longs require a cross above the lower band alongside oversold readings, while shorts require a cross below the upper band alongside overbought readings.
• Exits use a midpoint cross or an oscillator reading at the opposite extreme.
• The source calculation is a stochastic of price data, despite the strategy description naming Stochastic RSI.
• The stated backtest settings include no reported performance metrics, so profitability is not demonstrated.

Tags

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