MACD Crossover Breakout Strategy with RSI, SMA, and Trailing Stops

Summary

This short-term strategy combines MACD crossovers with RSI, a simple moving average, and price levels derived from recent highs and lows. Long entries require a bullish MACD crossover alongside readings below the RSI midpoint and SMA, with price below a calculated level; short entries apply the converse conditions. The source also uses ADX as a trend-strength filter, which the prose overview omits.

Positions use a fixed initial stop, then switch to a trailing stop after a specified profit threshold, with take-profit limits also available. The published settings and backtest configuration describe a short BTC/USDT futures sample, but the document gives no performance results. Its stated limitations include lagging signals, conflicting filters, false breakouts, and stops that may exit during an ongoing trend. The prose and source have some inconsistencies in how support and resistance levels are described, so the entry logic should be checked carefully before implementation.

Key ideas

• MACD fast and signal line crossovers provide the primary directional trigger.
• RSI, price relative to an SMA, and recent price levels act as additional entry filters.
• The source includes an ADX threshold filter that is not explained in the prose overview.
• Stops begin at a fixed distance and transition to trailing levels after a profit threshold.
• The document reports settings and a brief backtest window but no trading performance evidence.

Tags

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