TRMMA Trend Signals from TSI and RSI Crossovers

Summary

The True Relative Movement Moving Average strategy combines the True Strength Index (TSI) with the Relative Strength Index (RSI) to identify directional conditions. Its TSI uses double exponential smoothing of price changes, and its RSI is calculated from closing prices. A long condition occurs when TSI is above its signal line and RSI is above 50; the reverse conditions indicate a sell state. Bar colors mark buy, sell, or mixed indicator states, while the supplied strategy code opens long positions and closes them on sell conditions.

The described parameters use TSI lengths of 25 and 5, a signal length of 14, and a short RSI length of 5. The document proposes moving averages as an additional filter and discusses parameter tuning, stop losses, and position sizing. It gives a one-month BTC futures backtest configuration but no reported performance results, so its claims about signal quality are not substantiated by results here. It also notes risks from parameter sensitivity, frequent signals, and trend reversals.

Key ideas

• The strategy combines TSI and RSI to classify market direction.
• A bullish state requires TSI above its signal line and RSI above 50.
• A bearish state requires TSI below its signal line and RSI below 50.
• The displayed parameters are more responsive than the standard settings described in the document.
• The material gives backtest settings but no performance statistics.

Tags

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