Noro Trend Following with Price Channels, RSI, and Candle Bodies

Summary

Noro’s trend strategy combines a price-channel midpoint, a fast RSI, and a candle-body filter. The channel is formed from the highest and lowest closing prices over the selected lookback; recent lows above its midpoint indicate an uptrend, while recent highs below it indicate a downtrend. In an uptrend, a long signal requires RSI below 60 and a candle body larger than half its 10-bar average. In a downtrend, a short signal requires RSI above 40 and the same body-size filter. The source defaults to a 21-period channel lookback, enables both directions, and uses full equity per trade with no pyramiding.

A BTC/USDT futures test is listed for a one-month period with three-hour signals and 15-minute base data, but no performance metrics are provided. The article says the approach is intended for trending instruments and highlights risks from channel misclassification, missed signals, drawdowns, parameter tuning, and full-allocation sizing. It recommends adding stop and drawdown controls and tailoring position size, parameters, and trading windows; these ideas are not tested in the document.

Key ideas

• The channel midpoint classifies the trend using recent highs and lows, while RSI and candle-body size filter entries.
• Longs require an uptrend with RSI below 60, and shorts require a downtrend with RSI above 40.
• The source uses a 21-period channel lookback and defaults to full-equity position sizing.
• The listed futures test has no reported performance metrics, and the strategy may be unsuitable for non-trending markets.

Tags

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