Weekly RSI Moving-Average Crossovers for Long and Short Signals

Summary

The strategy applies moving averages to the relative strength index and uses crossings of the RSI midpoint to switch between long and short exposure. The accompanying description specifies weekly chart use and describes a buy or cover signal from a faster RSI average crossing above 50, with a sell or short signal from a slower average crossing below 50. However, the published code sets both moving-average lengths to the same input, so the implemented strategy does not match that stated fast-versus-slow formula. The oversold and overbought inputs are defined but do not affect the entries.

The author reports a historical comparison with the Dow from 1916 to 2015, excluding dividends and trading costs, and provides returns and annualized growth figures. Those results are presented as a backtest claim, not independent validation. The author also notes hindsight bias and warns that future performance is not assured; omitted costs, dividend treatment, and the mismatch between code and description limit interpretation.

Key ideas

• The stated approach uses RSI moving-average crossings of 50 to change long and short exposure.
• The description calls for weekly data and different average lengths, but the code uses the same length for both.
• Oversold and overbought inputs are present but unused by the trading rules.
• The reported century-long comparison excludes dividends and trading costs.
• The author acknowledges hindsight bias, and the code-description mismatch complicates replication.

Tags

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