Trend-Following Entries with Bollinger Bands, TSI, and ADX

Summary

This long-only trend-following method combines a 200-period moving average, custom Bollinger Bands, a weighted moving-average True Strength Index, and ADX. The stated entry setup requires price above the long-term average, repeated closes above the upper band, positive TSI, and ADX above 20. The document describes exiting when TSI turns against the position and says the approach is intended for trending stocks rather than all market conditions.

The article cites historical drawdown figures for AAPL, FB, and SPY, but the supplied backtest settings instead specify BTC/USDT futures over a different period; the source itself contains no reported performance table. The prose and source also differ in how they describe the TSI condition and exit, so the precise rules are not fully consistent. Risks include sudden price shocks and trend exhaustion, while suggested refinements include testing parameters and improving stops. The cited examples should not be treated as evidence of future returns or broad applicability.

Key ideas

• The approach combines a long-term moving average, upper Bollinger Band breakouts, TSI, and ADX for trend confirmation.
• Its stated long setup requires price above the long-term average, repeated band closes, positive TSI, and ADX above 20.
• The source is long-only and closes a long position when TSI crosses below its smoothed line.
• The article cites stock drawdown examples, but its published backtest settings refer to BTC/USDT futures.
• Sudden shocks, consolidation, and mismatches between the prose and source limit confidence in the stated results.

Tags

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