RSI, Higher Highs, and Moving Averages for Trend Entries

Summary

This proposed long strategy combines a 13-period RSI and its average with a sequence of three higher highs. An entry requires RSI to be above its average and rising across recent readings, alongside the higher-high pattern. The description presents 21-, 55-, and 144-day moving averages as trend filters, while the source code’s active entry condition does not use the 21- or 144-day averages. Exits are tied to a close below the 55-day average; the code also defines other conditions that are not used in the final exit rule.

Position size is specified as 10% of strategy equity, and the document gives daily BTC/USDT futures backtest dates. It reports no return, drawdown, or other test results, so its claims about reliability are not substantiated by evidence here. The author notes indicator lag, false signals in sideways markets, and losses during regime changes. Suggested refinements include adaptive parameters, volatility or trend filters, dynamic stops, profit targets, and scaled position changes.

Key ideas

• Long entries require RSI above its average, an upward RSI sequence, and three successive higher highs.
• The described moving-average set is 21, 55, and 144 days, but the active code uses the 55-day average for exits.
• The source sizes entries at 10% of strategy equity and closes the long position on its stated exit condition.
• The document identifies lag, ranging-market signals, and regime changes as risks.
• Backtest dates are provided without performance statistics, and several described conditions are inactive in the code.

Tags

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