VWMA Bollinger Breakouts with RSI and Fixed Profit Exits

Summary

This strategy enters long when the close crosses above an upper band and short when it crosses below a lower band. The bands are built around a volume-weighted moving average, with their distance set by a standard-deviation multiplier. Exits combine a fixed percentage profit target with RSI thresholds: low RSI closes longs, while high RSI closes shorts. The document also outlines possible refinements, including volume confirmation, volatility-adjusted parameters, multi-timeframe filters, and stop losses.

The supplied settings describe a one-hour ETH/USDT futures backtest over roughly a year, but no returns, drawdowns, or trade statistics are reported. Despite the Fibonacci name, the source uses a single standard-deviation multiple rather than a set of Fibonacci levels. The fixed profit target is not a loss limit, and the RSI exits may be late; the entry rules can also produce false breaks or frequent reversals. Results would require independent testing with costs and risk controls before drawing conclusions.

Key ideas

• Entries follow closes crossing the standard-deviation bands around a VWMA baseline.
• A fixed profit target and RSI thresholds provide separate exit conditions for long and short positions.
• The published test settings use hourly ETH/USDT futures data but include no performance results.
• The source uses one deviation multiple, despite the Fibonacci label.
• A profit target alone does not cap losses, and false breaks remain a stated risk.

Tags

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