This article will detail the logic behind Noro's Fast RSI Breakthrough Strategy, explain how trading signals are generated, and analyze the advantages and potential risks of this strategy.

I. Strategy Overview

This strategy mainly uses the RSI indicator to generate trading signals, combined with candlestick filtering and min/max breakthroughs as auxiliary judgements, forming a complete long/short decision system. The strategy name is "Noro's Fast RSI Breakthrough Strategy".

II. Strategy Details

1. Fast RSI Setting

The strategy uses a length 7 fast RSI to capture signs of market trends through fast RSI oscillations. Upper and lower limits of 70 and 30 are also set for the RSI to trigger signals when breached.

2. Candlestick Filtering

The strategy filters RSI signals using the candlestick body size sma, only considering RSI signals on candlesticks with body size larger than 5-day average body size, avoiding whipsaws.

3. Min/Max Breakthroughs

The strategy checks if min/max breakthroughs happened in recent mmbars, combined with RSI level to determine bottom reversals and top breakdowns.

4. Trading Signal Summary

Long signal: RSI crosses below 30, body size exceeds average body size, and min breaks supports.

Short signal: RSI crosses above 70, body size exceeds average body size, and max breaks resistances.

Exit signal: When RSI recrosses limits in opposite direction of position.

III. Advantages of the Strategy

1. Optimized RSI parameters capture trend change quickly.

2. Combining with candlesticks and min/max prevents unnecessary whipsaws.

3. Stop loss mechanism exits when RSI recrosses limits.

IV. Risks of the Strategy

1. RSI prone to false signals, needs auxiliary confirmation.

2. Backtest overfitting risks. Optimized parameters may only fit specific market periods.

3. Stop loss mechanism may be too mechanical, unable to control large loss on single stop loss.

V. Conclusion

This strategy integrates multiple technical indicators for robust trend following. But risks of backtest overfitting and stop loss should be noted, and live performance should be evaluated cautiously. Fine tune of parameters and control of position sizing recommended for live trading.