Supertrend and RSI Trend-Momentum Trading Rules

Summary

This strategy combines a Supertrend-style trend line with RSI thresholds to define long and short conditions. It calculates bands from a moving average and ATR, then treats price above the resulting line as bullish and price below it as bearish. A long condition pairs the bullish state with RSI above its oversold threshold; a short condition pairs the bearish state with RSI below its overbought threshold. The listed defaults are a 10-period ATR, factor of 3, 14-period RSI, and RSI levels of 70 and 30. The narrative describes RSI crossings, while the provided rules use threshold comparisons rather than requiring a fresh cross.

The document says stops should be placed at the Supertrend line and targets at twice the ATR distance, but the supplied strategy code does not implement those exits. It gives backtest settings for ETH/USDT over a specified hourly period, without reporting results or performance statistics. The proposed caveats include false signals in ranging conditions, rigid RSI thresholds, reversal exposure, and slippage during volatile periods. Suggested improvements include adaptive thresholds, volume confirmation, and volatility-aware risk settings.

Key ideas

• The strategy combines a Supertrend direction filter with RSI thresholds to set long and short conditions.
• Its stated defaults use a 10-period ATR, a factor of 3, and RSI thresholds of 70 and 30.
• The prose describes RSI threshold crossings, but the provided entry conditions check whether RSI is beyond a threshold.
• The narrative proposes a Supertrend stop and an ATR-based target, but these exits are absent from the supplied code.
• Ranging markets, rapid reversals, and slippage can weaken the approach.

Tags

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