Multi-Moving-Average Trend Following with RSI Filtering and Trailing Stops

Summary

This trend-following method uses 20-, 50-, and 200-period simple moving averages to classify their relative ordering, then filters entries with a 14-period RSI. It favors long positions in selected arrangements where shorter averages are above longer ones and RSI is below 70; short positions use selected reverse arrangements and RSI above 30. The described exits use a trailing stop and a price target intended to reflect a 1:10 risk-reward ratio, with a 25-point trailing offset.

The document provides BTC/USDT futures backtest settings covering several years, but gives no performance metrics. The accompanying source has limitations: several of its 18 listed scenarios are duplicate or unused, and it does not implement the stated 50-point initial stop loss. Repeated entry conditions and the wide RSI thresholds may also affect behavior. The document flags whipsaws in ranging markets, slippage, delayed reversals, and parameter sensitivity, and suggests volume, time, and trend-strength filters for further study.

Key ideas

• The strategy uses the relative ordering of 20-, 50-, and 200-period moving averages to identify directional setups.
• A 14-period RSI filter allows longs below 70 and shorts above 30.
• Exits combine a 25-point trailing stop with a target described as a 1:10 risk-reward setup.
• The source contains duplicate scenario definitions and does not implement the stated initial stop loss.
• No backtest performance results are reported, so effectiveness remains unestablished.

Tags

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