RSI Entries Filtered by a Long-Term Moving Average

Summary

This BTC futures strategy uses RSI for entry and exit timing, with a long-term simple moving average as a trend filter. It opens a long position when RSI crosses above its entry threshold while price is above the SMA. The rules also describe closing when RSI falls below a stop threshold or reaches a profit threshold, with a price-based trailing stop that tracks prior closes. Although the overview mentions overbought shorts, the detailed rules and source implement long trades only.

The document lists default indicator settings and a one-year daily-bar backtest configuration, but provides no reported returns, drawdowns, or comparison against a benchmark. Its claimed benefits are therefore unverified. It notes that fixed parameters may not transfer across assets or market conditions and that costs are omitted. The source’s stop logic is not fully consistent with the prose, so the precise behavior should be checked before relying on the strategy.

Key ideas

• A long entry requires RSI to cross above its entry level while price is above the SMA.
• The stated rules use RSI thresholds and a price-based trailing stop to manage exits.
• The detailed implementation is long-only, despite the overview’s mention of short trades.
• The document provides backtest settings but no performance results.
• Trading costs and the transferability of fixed parameters remain unresolved concerns.

Tags

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