Moving Average Crossovers Filtered by RSI for Trend Following

Summary

This long-only trend-following system uses a 9-period simple moving average and a 50-period simple moving average. A bullish crossover opens a position, while a bearish crossover closes it. The strategy requires the 14-period RSI to be above a threshold, set to 55 by default, before taking a long entry. The source also specifies using 30% of capital per position and includes a 0.1% commission assumption.

The document describes the approach as suited to markets with clear trends and warns that sideways price action may cause whipsaws. It suggests testing other moving-average periods, adding confirmation or volume measures, and introducing stop-loss rules. The published setup gives a BTC/USDT futures backtest window, but provides no return, drawdown, or trade statistics to support claims of stable performance. The RSI condition filters entries only; the described exit is the bearish moving-average crossover, with no explicit protective stop in the source.

Key ideas

• A 9-period SMA crossing above a 50-period SMA triggers a potential long entry.
• The entry also requires the 14-period RSI to exceed a default threshold of 55.
• A bearish crossover closes the long position.
• The source allocates 30% of capital per trade and accounts for a 0.1% commission.
• The document reports no backtest performance statistics and flags range-bound whipsaws as a risk.

Tags

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