Using a Polynomial-Fit Delta RSI Oscillator for Trading Signals
Summary
The Delta-RSI oscillator estimates the smoothed rate of change of RSI by fitting a local polynomial to its recent values. It is used as a standalone momentum signal, with configurable buy, sell, and exit rules based on crossing zero, crossing a smoothed signal line, or changing direction while on one side of zero. A normalized root-mean-square fitting error can optionally filter signals when the fit is too poor.
The document includes model and signal settings and a published one-month Bitcoin futures test configuration, but supplies no results with which to judge effectiveness. Its method depends on choices such as RSI lookback, fitting window, polynomial order, signal smoothing, and error threshold. The material describes how to generate signals, but gives no independent risk controls or evidence that any setting is robust across assets or market regimes.
Key ideas
- Delta-RSI applies a polynomial fit to RSI values to estimate smoothed momentum change.
- Signals can be based on zero crossings, signal-line crossings, or direction changes.
- A normalized fitting error threshold is available as an optional signal filter.
- The published test settings do not include performance results or evidence of out-of-sample robustness.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.