SMA Crossover Signals Filtered by RSI with Fixed Risk Levels
Summary
This trend-following strategy uses a fast and slow simple moving average crossover to signal possible changes in direction. A bullish crossover is accepted when RSI is below its overbought threshold, while a bearish crossover requires RSI to be above its oversold threshold. The listed defaults are 50 and 200 periods for the averages, a 14-period RSI, and RSI thresholds of 70 and 30. It also describes fixed stop and target percentages, chart highlights, and alerts.
The document gives a BTC futures backtest configuration for a one-hour chart over May 2024, but provides no performance statistics. It warns that moving average signals lag and can whipsaw in sideways markets, and that short periods may increase turnover, fees, and slippage. The source’s order logic also merits implementation review: it passes stop and limit prices to entry orders, and the described risk levels may not behave as intended for short positions. Parameter tuning and additional confirmation are suggested, but no validation evidence is supplied.
Key ideas
- A fast and slow SMA crossover provides the directional signal.
- RSI thresholds filter crossovers when momentum is near extreme levels.
- The stated defaults include 50 and 200 period averages and a 14 period RSI.
- Fixed percentage stop and target levels are described alongside chart alerts.
- Lag, sideways-market whipsaws, tuning, fees, and slippage are key limitations.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.