MACD and RSI Trend Entries with Fixed Sizing and Trailing Stops

Summary

This document presents a long-only trend strategy combining a short-period MACD signal with an RSI filter. It enters when the MACD line is above its signal line and RSI is at least the stated oversold threshold. Position quantity is calculated from a fixed trade amount and the current price, while an optional trailing exit is intended to protect gains. The description frames the indicators as confirmation for trend entries and gives configurable MACD and RSI periods and thresholds.

The document notes several limitations: short MACD settings can produce frequent signals in sideways markets, RSI filtering can miss early moves, fixed-amount sizing may leave account capital unused, and a narrow trailing distance may exit during volatile moves. The strategy only takes long positions, leaving it exposed to falling markets. Although a backtest configuration is listed, the document reports no performance evidence. The implementation details also do not clearly align with the narrative's stated trade amount and trailing-stop percentage, so those settings should be checked before relying on results.

Key ideas

• Long entries require the MACD line to be above its signal line and RSI to meet the oversold threshold.
• The strategy calculates order quantity from a fixed amount and the current price.
• An optional trailing stop is intended to protect open gains, but a tight distance can cause premature exits.
• The approach is long-only and can generate excessive signals in sideways markets.
• The listed backtest setup offers no reported evidence of profitability, and some implementation values appear inconsistent with the prose.

Tags

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