Multi-Timeframe Moving Average Trend Filter with RSI and Trailing Stops

Summary

This trend-following approach checks fast-versus-slow exponential moving averages across long, medium, and short chart intervals. It treats agreement across those intervals as a trend filter, then uses RSI thresholds to trigger entries and applies trailing stops to manage open positions. The article explains the intended roles of alignment, momentum extremes, and a trailing exit, and suggests volatility-adjusted stop distances and additional indicators as possible refinements.

The settings describe BTC/USDT futures over roughly a year, using daily strategy bars with hourly base data. The document supplies no trade statistics, so it does not establish the claimed accuracy or risk-reward profile. Its written explanation also differs from the source rules: RSI above its upper threshold with bullish alignment enters long, while RSI below its lower threshold with bearish alignment enters short. The displayed medium-timeframe calculation mixes series from different intervals as well. These details call for implementation review and careful out-of-sample testing. The stated limitations include delayed signals, RSI's weak ability to identify abrupt reversals, and sensitivity to trailing-stop distance.

Key ideas

• The approach filters for directional agreement among moving-average comparisons on three timeframes.
• RSI thresholds are combined with that alignment to trigger long or short entries.
• Trailing stops are used to manage exits, with their distance identified as a tuning choice.
• The published settings concern BTC/USDT futures, but the document gives no performance results.
• The code and prose differ in signal description, and the medium-timeframe calculation warrants review.

Tags

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