RSI Trend Entries with ATR Stops and a Midrange Filter

Summary

This strategy combines a 14-period RSI with price confirmation and an ATR-based stop. It enters long when RSI crosses above 60 and the close exceeds the previous high, and enters short when RSI falls below 40 and the close is below the previous low. The stated stop distance is 1.5 times ATR. RSI thresholds at 45 and 55 are used to close positions as momentum retreats. The document also describes the 45–55 RSI band as a no-trade zone intended to reduce activity during consolidation.

The published settings identify a two-hour BTC/USDT futures test covering one week in December 2024, but give no performance results. There is a notable implementation caveat: the source code’s no-trading-zone drawing section is commented out, and entry conditions do not explicitly block trades in that band. The strategy therefore describes a filter that the supplied entry logic does not appear to enforce. RSI lag, missed moves, and wider ATR stops in volatile conditions are also acknowledged limitations; parameter tuning and additional filters are suggested, but not evaluated.

Key ideas

• Long entries require an RSI cross above 60 and a close above the previous high.
• Short entries require an RSI cross below 40 and a close below the previous low.
• The described stop distance is 1.5 times ATR, while RSI levels 45 and 55 guide position exits.
• The 45–55 RSI band is presented as a consolidation filter, but the supplied entry logic does not enforce it.
• The published one-week test settings include no reported performance evidence.

Tags

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