SMA Crossover Momentum Strategy with RSI and Percentage Exits

Summary

This trend-following system combines 9- and 21-period simple moving averages with a 14-period RSI. It enters long when the shorter average crosses above the longer one and RSI is above 50; the short rule reverses both conditions. The described risk controls use a 1% stop and a 2% profit target, giving a stated target-to-stop proportion of two to one. Parameters are presented as adjustable, and the document suggests volatility-aware exits, volume confirmation, alternative moving-average types, and filters for weak trends or trading times as possible extensions.

The document provides daily BTC/USDT futures backtest dates covering about five years, but it reports no returns, drawdowns, trade counts, or other results. Its stated limitations include whipsaws in sideways markets, lag from moving averages, fixed stops that may not fit volatile conditions, and RSI weakness in extreme markets. The source calculates exit levels from the current close and submits them through exit orders, so actual behavior should be checked in the target platform before relying on the prose description.

Key ideas

• Long and short entries combine 9/21-period SMA crossovers with RSI above or below 50.
• The described exits use a 1% stop and a 2% profit target.
• The document identifies sideways-market false signals and moving-average lag as key limitations.
• The provided configuration specifies daily BTC/USDT futures data but gives no backtest results.
• Suggested extensions include volatility-sensitive exits, volume filters, and trend-strength controls.

Tags

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