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Triple Smoothed Moving Averages with RSI and Williams Fractals

Article Strategy library · Author: ChaoZhang

Summary

This strategy combines fast, medium, and slow smoothed moving averages with RSI and Williams fractal signals. It tracks a trend state after the fast average crosses the medium average, then waits for aligned average direction, RSI above or below 50, and a price or fractal trigger before entering. Only one position is allowed at a time, with percentage based stop loss and take profit exits.

The document gives example indicator settings and a BTC/USDT futures backtest window, but provides no performance results. It warns that crossovers and other indicators can give false signals in ranging markets, and that stop distances may be too tight or too wide. The code’s detailed conditions are not identical to the prose description: for example, it uses price relative to the fast average and combines fractal and slow average crossing conditions with an either/or rule. The precise implementation should therefore be reviewed before testing; the suggested next steps include parameter checks, volume filters, and paper trading.

Key ideas

  • The system combines three smoothed averages, RSI, and Williams fractals to identify entries in an established trend.
  • A fast and medium average crossover starts a waiting state for a first trade in that trend.
  • Entries require trend and RSI conditions, a price or fractal trigger, and no existing position.
  • Percentage based stop loss and take profit orders define exits.
  • The prose and code differ in some entry details, and no performance results are supplied.

Tags

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