Trend Following with RSI, MACD, Moving Averages, and ATR Exits
Summary
This strategy combines moving-average trend direction with RSI and MACD conditions to time entries. Long signals require the faster average to be above the slower one, RSI to cross above its oversold threshold, MACD to be positive relative to its signal line, and volume to clear a moving-average filter. The outline also describes short-side conditions, though the supplied source is truncated before those rules can be fully checked.
ATR sets a stop at two times its value and a take-profit target at four times its value. The source further shows partial profit-taking at an intermediate target and a trailing exit. It specifies a daily ETH/USDT backtest window from February 2024 to February 2025, but reports no performance statistics, so it provides no evidence of profitability. The document flags missed trades from multiple filters, whipsaws during volatility, and overfitting as risks; the proposed refinements are suggestions rather than tested improvements.
Key ideas
- A bullish moving-average alignment provides the trend filter for long entries.
- Long entries also require an RSI cross, bullish MACD confirmation, and sufficient volume.
- ATR multiples define initial stop and profit targets, with partial and trailing exits also described.
- The stated daily ETH/USDT backtest period is supplied without performance results.
- Multiple filters may reduce false signals while also missing trades, and tuned parameters may overfit.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.