Long-Only SMA Trend Entries with RSI and Fixed Risk Targets

Summary

This long-only method uses a 200-period simple moving average to define an upward regime. Price must remain above the average for at least 30 consecutive bars, and a 14-period RSI below 30 is required for entry, aiming to join an established uptrend during an oversold pullback. The stated exits are a 2% profit target and a 0.5% stop loss relative to entry price.

The document describes the rules and discusses their intended benefits, including filtering brief moves above the average and bounding per-trade losses. It also notes that the lagging average can delay signals, the RSI condition may exclude strong trends, fixed exits may not suit changing volatility, and the system cannot profit from falling markets. Backtest settings specify five-minute BTC/USDT futures bars for one week, but no results are reported. The rules therefore describe a testable setup rather than evidence of profitability; implementation details and market-specific behavior warrant examination.

Key ideas

• The 200-period SMA defines the long-term trend filter for entries.
• Price must stay above the SMA for 30 bars, while RSI must be below 30 to trigger a long setup.
• A fixed 2% target and 0.5% stop determine the stated exit levels.
• The method is long-only and may struggle with false breaks, indicator lag, or volatility changes.
• The published backtest configuration gives no performance results.

Tags

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