RSI Reversals Filtered by Supertrend Direction

Summary

This strategy seeks RSI reversal entries only when Supertrend agrees with the trade direction. It uses a 14-period RSI with thresholds of 35 and 65, alongside Supertrend calculated from a 10-period ATR and a factor of 3.0. A long signal follows an upward RSI cross out of oversold territory while the trend filter is bullish; a short signal follows a downward cross from overbought territory while the filter is bearish. The document also specifies a 1% stop loss and a 1.5% take profit.

The text reports a Bitcoin test on a 45-minute timeframe with 239 trades, total profit of 213,885 USDT, maximum drawdown of 15%, and profit factor of 1.12. These figures are presented without a detailed test period, costs, or broader validation, so they do not establish performance elsewhere. The stated limitations include whipsaws in ranging markets, fixed-stop mismatch with changing volatility, sensitivity to indicator settings, trend-filter lag, and lack of volume confirmation.

Key ideas

• RSI reversal signals are allowed only when Supertrend confirms the same directional bias.
• The stated settings are a 14-period RSI with thresholds at 35 and 65, and a 10-period ATR with a factor of 3.0.
• The strategy specifies a 1% stop loss and a 1.5% take profit for each trade.
• The reported Bitcoin test lists 239 trades, 213,885 USDT profit, 15% maximum drawdown, and a 1.12 profit factor.
• The evidence lacks full testing details, and the document flags ranging markets, parameter sensitivity, and trend lag as risks.

Tags

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