Trading RSI Crossovers Against a Moving Average of RSI

Summary

This strategy calculates RSI from a selected price source and compares it with a simple moving average of RSI. In the source’s default direction, it enters long when RSI crosses below its average and enters short when RSI crosses above it; an option reverses those signals. The document frames the method as combining momentum and average-based signals, with configurable RSI and average lengths. It also plots conventional overbought and oversold reference bands, although those levels do not appear in the entry rules.

The accompanying discussion identifies lag, false crosses, fast trend changes, and parameter sensitivity as risks, and suggests adaptive averages, volume confirmation, stops, and parameter testing. Those enhancements are not part of the supplied source. Published settings name BTC/USDT futures over a one-month interval, but no performance results are given. The narrative’s explanation of entries in terms of moving into overbought or oversold territory does not precisely match the source’s crossover conditions, so signals should be understood from the stated RSI-average crosses.

Key ideas

• The source compares RSI with a simple moving average calculated on RSI.
• By default, an RSI cross below its average opens a long, and a cross above opens a short.
• A reverse-trade option swaps the direction of those crossover signals.
• The plotted overbought and oversold bands are not used in the source’s entry conditions.
• The published BTC/USDT futures settings include no reported performance results.

Tags

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