SMA-Filtered RSI Short Strategy with Trailing and RSI Exits

Summary

This is a short-only strategy that uses a long-term simple moving average to filter entries and RSI to time them. It enters short when the 14-period RSI crosses above 51 while price is below the 200-period SMA. While short, it tracks a new low closing price as the trailing stop reference and closes if price rises above that reference. It also closes when RSI reaches either a higher stop threshold of 54 or a lower take-profit threshold of 32.

The document lists BTC/USDT Binance futures settings for a test using two-day bars over roughly a year, but provides no performance statistics. Its claimed trailing stop implementation appears to set the stop equal to each new low close; since the exit condition closes when price is above that value, behavior may differ from a conventional stop that ratchets upward. Costs, volume, and market structure are not modeled. Parameter fit, abrupt moves, and repeated or poorly timed signals remain risks, so the rules require careful evaluation and explicit risk management.

Key ideas

• Short entries require RSI to cross above 51 while price is below the 200-period SMA.
• The strategy closes shorts on a rise above its tracked low close or when RSI reaches either exit threshold.
• The trailing-stop logic may behave differently from a conventional ratcheting stop.
• The published BTC/USDT futures settings include no performance results or transaction cost analysis.

Tags

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