RSI-Filtered SMA Crossover Strategy for Long and Short Trades

Summary

This strategy combines a 14-period RSI with 100- and 150-period simple moving averages. It opens a long when the fast SMA crosses above the slow SMA and RSI is above 50; it opens a short on the opposite crossover when RSI is below 50. The same opposing conditions are described as closing the existing position and reversing direction. Although the overview mentions overbought and oversold levels of 70 and 30, the stated entry rules use the 50 threshold instead.

The document characterizes the method as a short-term reversal approach and reports that backtests performed well in a bear market, but gives no figures or evidence to assess that claim. Published settings cover BTC/USDT futures over about a year. Risks include failed reversals, whipsaws, drawdowns, and fees from frequent trading. The source specifies a percentage-of-equity position size and commission, but its close commands appear to reference a different position label than the entries, so the implementation may not match the prose. Stop-loss design and parameter robustness require further evaluation.

Key ideas

• The long signal combines an upward crossover of the 100-period SMA over the 150-period SMA with RSI above 50.
• The short signal uses the inverse crossover with RSI below 50, and is intended to reverse an existing position.
• The overview cites RSI levels of 70 and 30, but the actual entry rules use 50 as the threshold.
• The document claims favorable bear-market backtest performance without reporting metrics, and the published test covers BTC/USDT futures.
• Frequent crossovers can create fees and whipsaws, while the source's close commands may not match its entry labels.

Tags

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