RSI with WMA and EMA Crossovers for Trend Signals

Summary

This strategy uses a smoothed 14-period RSI with a 45-period weighted moving average and an 89-period exponential moving average, both calculated on the RSI. It enters long when the WMA crosses above the EMA while RSI is below 50, and enters short when the WMA crosses below the EMA while RSI is above 50. The RSI midpoint acts as a directional filter alongside the crossover signal.

The document includes published one-hour BTC/USDT Binance futures backtest settings covering about a month, but supplies no performance statistics, so the settings alone do not establish effectiveness. It warns that sideways markets can generate repeated false signals, and that moving-average lag and parameter sensitivity may hurt timing. ATR stops, trend-strength filters, volatility-aware sizing, and market-regime classification are suggested as possible extensions, not validated results.

Key ideas

• The strategy crosses a WMA and EMA calculated from RSI values rather than directly from price.
• A long signal requires an upward crossover with RSI below 50.
• A short signal requires a downward crossover with RSI above 50.
• The stated risks include sideways-market false signals, lag, parameter sensitivity, and drawdowns.
• Published backtest settings cover one month of hourly BTC/USDT futures, with no results reported.

Tags

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