MACD Crossover Entries Confirmed by RSI and Timed Exits

Summary

This strategy pairs MACD crossovers with RSI as a directional filter. It enters long on a MACD line crossing above its signal line when RSI is above 50, and enters short on a downward crossover when RSI is below 50. The documented default settings are MACD lengths of 12 and 26, signal smoothing of 9, and RSI length of 14. The exit rule closes a position after a fixed number of bars from the corresponding crossover, with a default of three.

The document presents the filter as a way to reduce some crossover noise, but supplies no performance statistics. It notes that MACD can lag, RSI can oscillate around 50 in consolidations, and fixed-duration exits may leave trend profits unrealized. Its published backtest settings identify BTC/USDT futures, daily bars with a one-hour base period, and a roughly one-year date range. The write-up characterizes the approach as short-term, while also recommending testing parameter choices, adding stops or other filters, and adapting exits to market conditions.

Key ideas

• A bullish MACD crossover is eligible for a long entry only when RSI is above 50.
• A bearish crossover is eligible for a short entry only when RSI is below 50.
• The stated exit rule closes positions after a fixed number of bars from the crossover.
• The document warns about lag, RSI whipsaws, and exits that may cut off strong trends, and reports no backtest outcomes.

Tags

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