RSI-Primed Value Trend Entries with Deep Averaging and RSI Exits

Summary

This long-only script combines a smoothed, range-normalized price measure called Value Trend with RSI. RSI below 30 arms the system; a later crossover of Value Trend above 25 triggers an entry when no trade is open. The script then permits another long entry if price falls to 75% or less of the most recent entry price. It closes all open trades when RSI enters the 78–80 zone for the first time, provided the position is at least slightly profitable relative to its average entry price.

The document supplies rules and source code but no performance results or market-specific validation. Its averaging rule can add exposure after a large adverse move, while the exit condition may leave losing positions open indefinitely. Although the strategy declaration permits pyramiding, the entry gate prevents new initial entries while trades are open; the separate averaging condition has no stated cap or spacing rule. These mechanics make position sizing and drawdown behavior important to assess before use.

Key ideas

• RSI below 30 arms a long setup, while a Value Trend crossover above 25 triggers entry.
• The script adds a long position when price falls to 75% of the latest entry price.
• A new RSI reading in the 78–80 zone closes positions only when price is above a small profit buffer.
• The document gives no backtest evidence, and its averaging rule can increase exposure during declines.

Tags

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