SMA Crossover Trend Following with RSI and ATR Exits

Summary

This strategy uses a short and a long simple moving average to signal changes in trend. A cross above the longer average prompts a long entry, while a cross below prompts a short entry. The described setup uses 10-day and 30-day averages, with RSI required to confirm direction: above 50 for longs and below 50 for shorts. ATR sets stop and target levels around the signal bar’s low or high, with trailing intended to respond to price movement.

The document explains the rules and discusses common trade-offs, but provides no backtest results or performance statistics. Moving average signals can lag and whipsaw in sideways markets; RSI filtering may reduce some false signals but cannot eliminate them. The published Pine code shows a BTC/USDT futures test period, but the document gives no resulting metrics. Its exit orders use ATR-based stop and limit prices, so claims about trailing should be treated cautiously. Parameter selection, position sizing, and testing across different market conditions remain important open tasks.

Key ideas

• A short SMA crossing above or below a longer SMA supplies the directional entry signal.
• RSI above or below 50 filters long and short entries, respectively.
• ATR-based stop and target prices are intended to adapt trade exits to volatility.
• Lagging averages and choppy markets can produce delayed or false signals.
• The document provides test settings but no performance results.

Tags

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