RSI, Bollinger Bands, IMI, and MFI for Oversold and Overbought Signals

Summary

This signal strategy combines RSI, Bollinger Bands, the Intraday Momentum Index, and the Money Flow Index to identify aligned oversold or overbought conditions. A regular buy signal requires RSI and IMI below 30, price below the lower band, and MFI below 20. A regular sell signal uses RSI and IMI above 70, price above the upper band, and MFI above 80. Strong signals use tighter thresholds: 20 and 10 for buys, and 80 and 90 for sells.

The document describes the approach as intended for a four-hour timeframe, while its published ETH/USDT backtest settings specify a one-hour period from December 2024 to February 2025. The source code generates strategy entries but gives no performance results or explicit exit and position sizing rules. The notes flag potential signal lag, fixed thresholds that may not suit changing conditions, and the limits of a single timeframe. Suggested extensions include adaptive thresholds, trend filtering, volatility-based sizing, and ATR-based exits; these are proposals rather than tested features.

Key ideas

• Buy signals require simultaneous oversold readings across RSI, IMI, and MFI, with price below the lower Bollinger Band.
• Sell signals require simultaneous overbought readings across the indicators, with price above the upper band.
• Tighter indicator thresholds define stronger signals.
• The published backtest settings use ETH/USDT data at a one-hour period, despite the description's four-hour timeframe.
• The document reports no performance metrics and does not specify explicit exit or position sizing rules.

Tags

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