RSI Threshold Entries with a Fixed Ten-Day Holding Rule

Summary

This simple long-only strategy uses a 10-day RSI to time entries and exits. It opens a position when RSI falls below 30, subject to an additional time-of-day condition in the source, and closes when RSI rises above 40 or after ten bars from the entry signal. The accompanying description frames the holding period as ten days, consistent with the daily backtest interval. Although it discusses RSI above 70 as an overbought level, the stated sell threshold is 40.

The document explains the threshold logic and suggests tuning RSI settings, adding indicators, adapting exits and position sizing, and testing different products and trading times. It presents no performance statistics. Its own caveats include lagging signals, risk of overfitting RSI parameters, and the rigidity of a fixed holding period. Published settings show a one-year daily BTC/USDT futures test, but do not establish results beyond that sample.

Key ideas

• A 10-day RSI below 30 triggers a long entry, with the source also imposing a time-of-day filter.
• The position closes when RSI exceeds 40 or ten daily bars have elapsed since the entry condition.
• The method uses thresholds and a fixed holding rule rather than a separate dynamic stop-loss system.
• The document identifies indicator lag, parameter overfitting, and inflexible exits as limitations.
• The published backtest settings specify one year of daily BTC/USDT futures data without reporting performance results.

Tags

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