KNRP Trend Signals from RSI, Stochastic, and Momentum

Summary

The strategy constructs a composite indicator, KNRP, by multiplying the stochastic oscillator by RSI and dividing by a momentum ratio. Its code calculates RSI from the open price, uses close prices for momentum, and applies a short moving average to the resulting series. It takes a long position when that average rises from the prior bar and a short position when it falls; an optional reverse setting swaps those directions. The strategy closes positions when the comparison is unchanged.

The stated defaults use nine-period inputs for momentum, RSI, and stochastic, with a two-period averaging window. The published configuration describes daily BTC/USDT futures bars from late 2022 to early 2024, but reports no numerical outcomes despite broad claims of good backtest performance in the overview. The document recommends parameter testing and adding explicit stops, profit-taking, and position sizing. The unusual combination and differing input prices make validation important; no evidence is given that the composite reduces false signals or remains stable across markets.

Key ideas

• KNRP combines stochastic and RSI values divided by a momentum ratio.
• The code calculates RSI and stochastic from the open price while momentum uses closing prices.
• A rising short average of KNRP signals long, and a falling average signals short.
• An optional reverse setting swaps the direction of those signals.
• The published BTC futures configuration has no numerical performance results, and the strategy includes no explicit stop or position sizing logic.

Tags

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