RSI Thresholds with Time Filters and Adverse-Move Scaling

Summary

This strategy combines RSI thresholds with a restricted trading window and staged position entries. It uses a 14-period RSI, with oversold and overbought levels of 30 and 70, and the source sets the default window to hours 2 through 4. Initial long or short entries are taken when the corresponding threshold is reached while flat. If price then moves adversely by one point relative to the average entry price, the strategy adds another unit. It places a take-profit limit 1.5 points from the average price.

The document describes this as a way to adjust average entry cost, while noting that repeated scaling can consume substantial capital in strong trends. It provides a published BTC/USDT Binance futures configuration from December 2024 to January 2025, but no performance measures. The source does not define a stop loss or a cap on added entries, and the trading-hour filter may constrain both entries and management actions. The stated points and hours are market- and time-zone-dependent, details the document does not clarify.

Key ideas

• The system uses RSI readings at 30 and 70 to initiate long and short positions within a specified hour window.
• It adds to positions after an adverse one-point move from the average entry price.
• Take-profit limits are set 1.5 points from the average price, with no stop loss specified.
• Repeated scaling can increase capital use during a persistent trend, and no entry cap is described.
• The published futures backtest configuration includes no performance results.

Tags

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