Moving Average and RSI Filters for Fractal Breakout Entries

Summary

This breakout strategy requires price to be above or below three moving averages, with RSI confirming the same direction. It then uses a recent high or low as a breakout trigger: a long signal requires the current high to exceed the prior fractal high, while a short signal requires the current low to fall below the prior fractal low. Position size is calculated as a selected fraction of equity adjusted by leverage.

The document provides a BTC/USDT futures backtest setup using ten-minute bars, but reports no performance outcomes. It warns that the indicators can lag, that reversals may catch positions before exit, and that extreme moves can exceed the intended loss. Although the prose discusses limiting single-trade losses, the supplied logic has no explicit stop-loss or exit conditions, so position sizing alone does not cap realized losses. The proposed improvements include adding stops, testing indicator combinations, and reducing exposure or leverage.

Key ideas

• Long entries require price above all three moving averages and RSI above 50.
• Short entries require price below all three moving averages and RSI below 50.
• A break beyond the prior fractal high or low acts as the entry trigger.
• Position size scales with a chosen equity percentage and leverage.
• The backtest settings provide no results, and the source does not define explicit stops or exits.

Tags

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