RSI and Moving Average Trend Entries with a Percentage Trailing Stop

Summary

This strategy combines a 2-period RSI with 50-period and 200-period moving averages. It seeks long entries when the faster average is above the slower average, price is above the slower average, and RSI is below the oversold threshold; short entries use the opposite average relationship and an overbought RSI reading. An optional trend filter removes the price-versus-slow-average condition, and the strategy exits with a percentage trailing stop. The published defaults set the RSI thresholds at 10 and 90 and the trailing stop at 1%.

The document also describes an optional filter based on the difference between moving-average slopes, intended to avoid unclear market conditions. It notes that indicators can lag, stops may trigger during low-volume declines, and overnight or premarket moves may be poorly handled. The proposed adjustments include changing indicator periods, adding volume confirmation, and filtering trading sessions. The stated backtest covers a one-month window on BTC/USDT futures at an hourly interval, but no performance figures are provided; claims about stability or effectiveness therefore remain unsubstantiated in the supplied material.

Key ideas

• The entry rules pair extreme readings from a 2-period RSI with the direction of 50-period and 200-period moving averages.
• An optional slope-based filter is intended to screen out periods without clear direction.
• Exits use a percentage trailing stop, with the published default set to 1%.
• The document identifies indicator lag, stop triggers, and overnight moves as risks.
• The described backtest configuration has no accompanying performance results.

Tags

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