Long-Term Trend Pullbacks with Moving Averages and RSI

Summary

This strategy looks to buy short-term weakness while the market remains above a long-term moving average. It enters long when the close is above the 200-day simple moving average but below the 10-day average, with RSI(3) below 30. The stated rules set a stop 5% below entry and a profit target 20% above entry; the script also submits those levels as stop and limit exits. It closes when price rises above the short average or falls below the prior candle’s low.

The document explains the intended logic and suggests adding trend confirmation, adjusting average periods and exit levels, or using volume as an entry filter. Its evidence is descriptive: it provides no performance results or comparisons. The published test setup is BTC/USDT futures over roughly one year, but that setup alone does not establish profitability. The prose also describes RSI below 30 as three consecutive falling candles, which is not a precise definition of RSI. The source uses a fixed date filter rather than applying the configurable start and end dates, and its additional close condition appears inconsistent with the stated exit rationale.

Key ideas

• The long-term filter requires price to close above the 200-day simple moving average.
• A pullback entry requires price below the 10-day average and RSI(3) below 30.
• The strategy sets a 5% stop and a 20% profit limit relative to average entry price.
• The document recommends testing trend filters, indicator periods, exit settings, and volume confirmation.
• The published BTC/USDT futures setup provides no reported performance evidence.

Tags

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