Triple RSI Oversold Entries with a 200-Day Trend Filter

Summary

This long-only strategy seeks oversold entries when price remains above its 200-day simple moving average. It uses a short-period RSI: the current reading must be below 35, four consecutive readings must decline in sequence, and the reading from three periods earlier must be below 60. The position closes when RSI rises above 50. The document’s source implements these conditions with an RSI length of 5 and close as its default input.

The document explains the idea as buying weakness within a broader upward trend, but supplies no reported backtest performance despite listing BTC/USDT futures settings. It notes that RSI can lag, strict entry rules may limit trade frequency, and choppy conditions can lead to repeated entries and exits. The stated logic does not include a stop loss or short entries; these and position sizing are suggested as possible extensions, not established results.

Key ideas

• A long entry requires price to be above its 200-day simple moving average.
• The entry also requires RSI below 35 and a declining sequence across four readings.
• A position closes when RSI rises above 50.
• The strategy is long-only and has no stop loss in the described implementation.
• The document lists backtest settings but gives no performance results.

Tags

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