Laguerre RSI Signals Filtered by ADX Trend Strength
Summary
This strategy pairs a Laguerre RSI oscillator with the Average Directional Index (ADX). It enters long when the scaled oscillator crosses above a configurable buy level and enters short when it crosses below a sell level; both signals require ADX to exceed a chosen threshold. The oscillator uses a Laguerre filter, while ADX is intended to screen out periods with weak trend strength. Source selection, the filter coefficient, oscillator levels, and ADX settings are configurable.
The document presents the approach as a way to combine responsive momentum signals with trend-strength confirmation. It also acknowledges that oscillator crossings can whipsaw in choppy markets and that the ADX filter can delay entries. No stop-loss, take-profit, or position-sizing rules are included in the described strategy, leaving trade and portfolio risk controls unspecified. A BTC-USDT Binance futures test interval is given, but no results are reported, so the claimed general usefulness across markets and timeframes is not supported here by performance evidence.
Key ideas
- Long and short entries are triggered by Laguerre RSI crossings of separate configurable levels.
- An ADX threshold must be exceeded for either signal to qualify.
- The filter aims to avoid trades during weak trends but can delay entries.
- The document identifies choppy-market false signals and missing risk controls as limitations.
- A BTC-USDT futures test interval is supplied without performance results.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.