Trend-Following Signals Combining RSI, ADX, Ichimoku, and Moving Averages
Summary
This BTC perpetual futures strategy combines trend direction, strength, and momentum filters. It requires ADX above 20 and uses price relative to the Ichimoku cloud to establish direction. A 14-period SMA crossing a 28-period SMA supplies the entry trigger. For longs, the RSI must be below its own moving average; for shorts, it must be above its moving average. The source specifies a 14-period RSI and Ichimoku components based on periods 9, 26, and 52.
The document includes a roughly year-long daily-bar backtest configuration, but gives no reported returns, drawdowns, or trade statistics. Its listed concerns include parameter sensitivity, false signals in unclear or volatile markets, and costs from frequent trading. It suggests testing stop-loss and take-profit rules, volatility-based position sizing, and applications across markets and timeframes. The entry conditions are described, but no explicit exit rules are provided, limiting what can be inferred about the complete trading system.
Key ideas
- ADX above 20 is used to filter for stronger trends.
- Price above or below the Ichimoku cloud sets the long or short direction.
- A 14-period and 28-period SMA crossover provides the entry trigger.
- RSI relative to its own moving average is an additional entry filter.
- The document supplies a backtest setup but no performance evidence or explicit exit rules.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.