RSI Midline Signals with EMA Filtering and ATR-Based Exits

Summary

This short-term strategy uses RSI crossing the 50 level for direction, with a 200-period EMA filter: longs require price above the EMA and shorts require price below it. It calculates stop-loss and take-profit levels using a 14-period ATR multiplied by a configurable factor, described as 1.5 by default. On an opposing signal, the implementation closes the existing position before entering in the other direction. The text also describes a two-part exit concept, though the supplied code enters a single fixed-size position and sets stop and limit exits.

The document presents the strategy as designed for the Nasdaq 100 on a three-minute timeframe, but the published backtest configuration instead uses DOGE/USDT futures on a two-minute interval. It supplies no performance results, so suitability for either market is not demonstrated. The text flags trading costs, lag, fixed ATR scaling, and market dependence as concerns; parameters and results would need evaluation on the intended instrument and timeframe.

Key ideas

• Long and short signals require RSI to cross the 50 level while price is on the matching side of a 200-period EMA.
• Stop-loss and take-profit levels are set using ATR multiplied by a configurable factor.
• The code closes an existing position when an opposite signal arrives and then opens a position in the new direction.
• The prose describes a two-part exit, while the supplied code implements a single fixed-size position.
• The stated Nasdaq 100 three-minute design differs from the published DOGE/USDT two-minute futures configuration, and no results are reported.

Tags

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