RSI-Filtered WMA and EMA Crossover Trend Strategy

Summary

This document describes a trend-following system that combines a 14-period RSI with a 45-period weighted moving average and an 89-period exponential moving average. The crossover rules are applied to the RSI series: a WMA cross above the EMA with RSI below 50 signals a long entry, while a cross below with RSI above 50 signals a short entry. It also describes colored RSI zones and alerts for potential signals.

The published settings identify a one-hour BTC/USDT futures backtest period, but no performance results are reported. The strategy has no explicit stop-loss or take-profit orders, so its entry and alert logic alone does not define complete trade risk management. The document also notes likely lag and false signals in sideways markets, fixed RSI thresholds, and the absence of a volatility filter. It suggests adaptive thresholds, ATR-based sizing or stops, volume confirmation, and changes to moving-average periods as possible extensions, rather than tested improvements.

Key ideas

• The strategy computes a 14-period RSI and smooths that RSI series with a 45-period WMA and an 89-period EMA.
• A WMA cross above the EMA with RSI below 50 signals a long entry, while the reverse crossover with RSI above 50 signals a short entry.
• The chart colors RSI by threshold zones and includes alerts and visual entry markers.
• The published backtest settings specify a one-hour BTC/USDT futures market, but provide no performance results.
• The rules include no stop-loss or take-profit orders and may produce lagging or false signals.

Tags

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