Golden-Cross Momentum Entries with RSI and Trailing Stops

Summary

This long-only strategy combines a fast exponential moving average with a slower simple moving average to define the broad regime. It considers entries when the fast average is above the slow one, price is above a shorter trend EMA, RSI is below a configurable cap, and a composite strength score reaches its minimum. The score adds weight for the moving-average alignment and smaller contributions for RSI, distance above the slow average, and price relative to the trend EMA.

Open positions are managed with a percentage-based trailing stop and closed when the fast average falls below the slow average. The script specifies position sizing as a share of equity, initial capital, and a commission assumption, and names several energy-related equities as intended applications. However, the document supplies no backtest period or performance report. The score and thresholds are design choices rather than validated evidence, and the strategy’s long-only exposure, indicator lag, and sensitivity to market regime should be evaluated for each instrument.

Key ideas

• A fast EMA above a slow SMA defines the bullish regime for potential long trades.
• Entries also require price above a trend EMA, RSI below a cap, and a sufficient composite score.
• The score combines trend alignment, RSI, momentum relative to the slow average, and price position.
• Positions exit on a bearish moving-average regime shift or a trailing stop.
• The script names energy-related equities but provides no backtest results to establish performance.

Tags

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