Multi-Moving-Average Trend Signals with ADX, RSI, and Volume Filters

Summary

This document outlines a trend-following system that combines Double Hull moving-average calculations with a volume-weighted moving average (VWMA), RSI, ADX, and a volume filter. Long and short direction is determined by the relative position of two derived lines, with price also required to be above or below the VWMA. The strategy permits entries only when ADX exceeds a threshold, RSI is between 30 and 70, and current volume exceeds its recent average. These conditions are intended to focus trades on stronger trends while avoiding extreme RSI readings and low-activity periods.

The published backtest settings specify BTC/USDT futures on hourly bars from November 11 to December 10, 2024, but no performance statistics are provided. The code also calculates and plots a base weighted moving average that does not appear in its entry conditions, and the document's summary describes a broader multi-average system than the actual signal rules use. Multiple filters may delay or eliminate trades; moving averages can lag reversals, and parameter selection can overfit. The document suggests risk controls and further testing, but does not define stop-loss or take-profit rules.

Key ideas

• The system uses derived moving-average lines to determine direction and VWMA position to confirm price alignment.
• Entries require ADX above 20, RSI between 30 and 70, and volume above its recent average.
• The strategy supports both long and short entries but does not specify exit or stop rules.
• Hourly BTC/USDT futures backtest settings are provided without performance results.
• The document warns that filters can miss trades, moving averages can lag, and parameter optimization can overfit.

Tags

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