MA, RSI, ADX and ATR Trend-Confirmation Strategy

Summary

This strategy combines moving-average crossovers with momentum and trend-strength filters. A 20-period average crossing above or below a 50-period average sets the direction; a 14-period RSI must agree by being above or below 50, and a 14-period ADX must exceed 25. The proposed exits use ATR multiples: a stop at twice ATR and a target at four times ATR, giving a stated 1:2 risk-to-reward ratio.

The document describes the rules and includes Pine Script plus hourly BTC/USDT futures backtest settings for a short date range. It supplies no performance results, comparison, or statistical evidence, so the settings alone do not establish profitability. The source also appears inconsistent with the prose: its entry calls use stop and limit parameters derived from the exit levels, while the described stop-loss and take-profit behavior would usually require exit orders. The strategy itself flags risks from sideways conditions, indicator lag, parameter sensitivity, and major events.

Key ideas

• A 20-period and 50-period moving-average crossover determines the trade direction.
• RSI above or below 50 confirms momentum, while ADX above 25 filters for stronger trends.
• Stops and targets are set at two and four times ATR, respectively.
• The document gives backtest settings but reports no performance evidence.
• The supplied order code may not implement the described exits as intended.

Tags

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