Moving Average Trend Following with RSI and Volume Filters

Summary

This long-only trend-following method combines a short and a longer moving average with RSI and traded volume. A buy requires the close to be above the short moving average, RSI to be above its own average, and volume to exceed its moving average. The position closes when price crosses below the longer moving average or RSI crosses below its average. The published defaults use 21- and 55-period price averages, 13-period RSI and RSI average, and a 21-period volume average.

The document specifies a daily Binance BTC/USDT futures backtest spanning late 2019 to early 2025, but includes no reported performance metrics. It presents price, momentum, and volume as complementary filters, while acknowledging delayed signals, false breakouts in ranging markets, parameter sensitivity, trading costs, and liquidity constraints. The source entry condition checks whether values are above their averages rather than requiring fresh crossovers, an important distinction from parts of the prose. No evidence here demonstrates profitability or risk-adjusted performance.

Key ideas

• A long entry requires price above the short moving average, RSI above its average, and volume above its average.
• The position exits when price crosses below the longer moving average or RSI crosses below its average.
• The described defaults use 21- and 55-period price averages and 13-period RSI calculations.
• The source and prose differ on whether RSI must cross its average or simply remain above it.
• Backtest settings are listed without results, and lag, ranging markets, costs, and liquidity are cited as risks.

Tags

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