Long-Only WMA Crossover Entries with RSI and Fixed Exits

Summary

This short-term, long-only setup combines a 7-period and 9-period weighted moving average crossover with an RSI filter. It enters when the faster WMA crosses above the slower one while RSI is below 40, seeking a rebound from oversold conditions. The described exits use a 20-point stop loss and 40-point take profit, giving a stated 2:1 reward-to-risk ratio. The document also describes a long signal chart marker and a 5-minute intended timeframe.

The material explains the rules and lists possible refinements, including volatility-based stops, higher-timeframe trend checks, volume confirmation, partial profit taking, and market-regime filters. It provides backtest settings for BTC/USDT futures over June 2024, but reports no performance results, so it does not establish profitability. The source and prose also contain a discrepancy: the overview says the macro filter uses a 240-minute WaveTrend, while the code in the separate document is unrelated to this strategy; here, the main limitation is that fixed point exits and a long-only bias may behave poorly as volatility or market direction changes.

Key ideas

• A long entry requires the 7-period WMA to cross above the 9-period WMA while RSI is below 40.
• The described exit levels are a 20-point stop and a 40-point take profit.
• The strategy is presented as a short-term, long-only approach intended for a 5-minute chart.
• Fixed exits and crossover signals may be vulnerable to volatility shifts and ranging markets.
• The published BTC/USDT futures backtest settings do not include performance results.

Tags

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