RSI-Based T3 PMax Signals with ATR Trailing Stops

Summary

This strategy smooths the Relative Strength Index (RSI) with a Tillson T3 average, then constructs a PMax stop line whose distance from T3 depends on the Average True Range (ATR). The stop distance therefore adjusts with measured volatility. In the source, a crossover of T3 above PMax triggers a long entry, and a crossunder triggers a short entry; the overview also describes price crossing T3 and falling below the stop as the signal logic. The configured backtest uses BTC/USDT futures on five-minute bars for about a week.

The document provides indicator settings and a test configuration, but no reported performance, so it offers no evidence that the claimed accuracy or drawdown control was achieved. Indicator signals can fail during reversals or when the trend assessment is wrong, and the results may depend on RSI and T3 lengths and the ATR multiplier. The text suggests testing other trend filters and stop widths across markets; the short sample configuration does not establish robustness.

Key ideas

• The method smooths RSI with a Tillson T3 average to represent trend direction.
• It offsets the T3 with an ATR-scaled PMax stop that adapts to measured volatility.
• The source enters long on a T3-PMax crossover and short on a crossunder.
• The BTC/USDT futures configuration reports no results, and indicator failures and parameter sensitivity remain limitations.

Tags

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