RMI Momentum Entries with ATR-Based Trend Bands

Summary

This strategy pairs the Relative Momentum Index (RMI) with ATR-based bands around a moving average. The stated entry rules go long when RMI exceeds 60 and price is above the trend reference, and go short when RMI falls below 40 and price is below it. Exits use the opposite band as a dynamic stop, with a return toward the neutral RMI region also described as a reason to close. Trade direction and indicator lengths are configurable.

The document includes BTC/USDT futures backtest settings and source code, but it gives no performance statistics. There is also a material difference between the prose and implementation: the code’s entry trend check compares price with a short moving average, while its separate presentTrend calculation is described as a simplified example and is not used for entries. The code does not implement the stated RMI-neutral exit condition. The author notes that layered conditions may miss trades, frequent signals can raise costs, and manual trend judgment and parameter testing remain necessary.

Key ideas

• The strategy combines an RMI threshold with a price-based trend condition for directional entries.
• It uses ATR bands as dynamic stop levels for open positions.
• The parameters allow traders to choose long, short, or both directions.
• The source implementation differs from parts of the written description, including its trend reference and exit logic.
• No performance results are reported for the supplied backtest configuration.

Tags

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