RSI and Weighted Moving Average Signals with ATR Trailing Exits

Summary

This strategy combines RSI thresholds with the rate of change of a weighted moving average to generate directional trades. The stated long condition is RSI above 60 alongside a negative moving-average ROC threshold; the short condition uses RSI below 40 and a positive ROC threshold. The weighted average gives recent observations greater weight, and the configuration permits a standard moving average as an alternative. The intended holding horizon is medium to long term.

The document describes an ATR-based trailing take-profit, an ATR stop loss in the supplied source, and position adjustments after gains or losses reach fixed dollar increments. It publishes a BTC/USDT futures example using daily bars and a one-hour base period from late 2022 to late 2023, but gives no performance results. The strategy may struggle in range-bound markets, and its outcomes depend on parameter choices and execution assumptions. The written explanation also contains an inconsistency: it calls RSI a trend-direction measure and describes WMA weighting in a way that differs from the conventional interpretation of lookback indices.

Key ideas

• Long and short signals combine RSI thresholds with the weighted moving average's rate of change.
• The weighted average is intended to emphasize recent prices, with a standard average available as an alternative.
• The source configures ATR-based trailing profit exits and stop losses.
• Position size is adjusted in response to gains or losses reaching a fixed monetary increment.
• The example specifies a BTC/USDT futures test period but reports no performance results.

Tags

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