SMA Crossover Trend Following with RSI, Bollinger Bands, and ATR
Summary
This 15-minute trend-following system uses a fast and slow simple moving average crossover to signal direction, then filters entries with RSI and Bollinger Band position. It sets stop-loss and profit-target levels at ATR-based distances from the entry and describes limiting risk per trade relative to account capital. When a reverse signal occurs, the strategy closes the existing position and opens one in the other direction.
The document explains the indicator logic and provides code illustrating entries, exits, and plotted levels, but it reports no backtest performance evidence. It notes that short moving averages can generate whipsaws, fixed RSI thresholds and ATR multiples may not suit all conditions, and gaps can cause stop execution beyond the planned level. Other limitations include technical-only inputs, parameter fitting, and liquidity. Suggested extensions include stronger trend filters, multi-timeframe confirmation, volume conditions, and adaptive sizing.
Key ideas
- A fast and slow SMA crossover determines the trade direction.
- RSI thresholds and Bollinger Band location filter crossover entries.
- ATR-based stops and targets adjust exit distances to market volatility.
- The document describes a per-trade account risk limit, but gives no measured results.
- Whipsaws, fixed thresholds, gaps, and liquidity can undermine live outcomes.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.