Monthly RSI and MACD New-High Breakout Strategy

Summary

This strategy seeks long entries when the 14-period RSI reaches a new high over a 36-period lookback and at least one of two MACD measures also reaches its own lookback high. The first MACD measure is the difference between 4- and 9-period exponential moving averages; the second uses 12- and 26-period averages. The description frames these simultaneous indicator highs as confirmation of a strong, potentially persistent trend. It also proposes an exit after 30 bars.

The document includes code and published BTC/USDT futures backtest settings spanning about one year, but reports no returns, trade counts, or risk statistics. It warns that indicator highs can trigger misleading entries and that a fixed-duration exit may cut off a longer trend. The code’s 36-period lookback is described as 36 months, though the settings show daily bars, making that interpretation unclear. Its exit call also does not clearly implement the stated 30-bar holding period. Longer, multi-market testing and alternative exits are suggested, not demonstrated.

Key ideas

• A long signal requires a new RSI high alongside a new high in either of two MACD measures.
• The RSI uses a 14-period calculation, while the MACD measures use 4/9 and 12/26 exponential moving averages.
• The written strategy proposes an exit after 30 bars.
• The document cautions that indicator highs can produce misleading entries and fixed-duration exits may end trends early.
• Published backtest settings are provided, but no performance results are reported.

Tags

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