TSI Signal-Line Reversals with Session and Trade-Frequency Filters
Summary
This strategy uses the True Strength Index (TSI) and its signal line to seek reversal entries at extreme readings. It opens a long when TSI crosses above the signal line while the signal line is below a lower threshold, and a short when TSI crosses below it above an upper threshold. A position closes on the opposite crossover. The design also limits trading to configured weekdays and a session window, and requires a minimum number of bars between entries.
The document identifies parameter sensitivity and the possibility of losses in choppy markets. It also notes that the rules provide no explicit position sizing or broader trend filter, and may miss sustained trends. EMA and ATR are mentioned as possible supporting indicators, but the supplied source does not use them in its entry or exit rules. Backtest settings cover a brief BTC/USDT futures period and report no performance results, so they do not establish the strategy's effectiveness.
Key ideas
- Long entries require an upward TSI crossover while the signal line is below the lower threshold.
- Short entries require a downward crossover while the signal line is above the upper threshold.
- Opposite TSI crossovers close existing positions.
- Session and weekday restrictions, plus a bar-spacing rule, limit when entries can occur.
- The document highlights parameter sensitivity, choppy-market losses, and the absence of position sizing.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.