MA Crossover Trend Following with RSI Filters and Risk Targets

Summary

This swing strategy uses a fast and slow simple moving average crossover to define a directional trend, then checks RSI before entering. A bullish crossover can trigger a long when price is above the fast average and RSI is below its overbought threshold; a bearish crossover can trigger a short when price is below the fast average and RSI is above its oversold threshold. Stop distance is set as a percentage of the latest close, and the profit target scales that distance by a risk-reward input.

The document lists configurable MA and RSI periods, thresholds, stop distance, and reward multiple. Its published backtest settings describe BTC/USDT futures data over roughly a month, but no return, drawdown, trade count, or other result is reported. The source and prose also leave practical questions: the parameters are named as day-based averages while calculations use chart bars, and stop and target prices are recalculated from each bar’s close. Crossover lag, range-bound markets, parameter sensitivity, and exceptional events remain stated limitations.

Key ideas

• A fast and slow moving-average crossover supplies the strategy’s trend direction.
• RSI thresholds filter entries by avoiding longs above the overbought level and shorts below the oversold level.
• The stop is a percentage from the close, while the target uses the stop distance multiplied by a risk-reward setting.
• The published test uses BTC/USDT futures data but reports no performance statistics.
• Moving-average lag, sideways markets, parameter sensitivity, and extreme events are risks.

Tags

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