PresentTrend: RSI or MFI Signals with ATR-Based Trend Levels

Summary

PresentTrend is a trend-following method that builds a trailing level from average true range and a custom indicator using either RSI or MFI. The indicator’s value is compared with its value two bars earlier to generate long and short signals; a direction state tracks which signal is active. The strategy can trade both directions or restrict entries to long-only or short-only, closing a one-sided position when the trend state reverses. The listed inputs include the price source, indicator length, ATR multiplier, and indicator choice.

The document explains the signal construction and gives BTC_USDT futures backtest settings, but reports no performance outcomes. It characterizes the strategy as combining shorter- and longer-term trends, though the supplied implementation offers no separate explicit confirmation signal beyond the custom trend calculation. No ordinary stop-loss is implemented in the source despite being suggested as a possible improvement. Whipsaws, trading costs from frequent reversals, and parameter choice remain material risks; the claim that default settings are optimized is unsupported by results here.

Key ideas

• The custom PresentTrend level uses ATR and either RSI or MFI to determine its trailing value.
• Crossovers between the indicator and its value two bars earlier produce long and short signals.
• A direction setting supports long-only, short-only, or two-way trading.
• The published BTC_USDT futures settings contain no performance results to validate the method.
• Whipsaws, fees, parameter sensitivity, and the lack of a conventional stop-loss in the source are limitations.

Tags

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