This strategy combines the Relative Strength Index (RSI) and Supertrend technical indicators to capture market trends and identify potential trading opportunities. The main idea behind the strategy is to use RSI to determine overbought and oversold market conditions while using the Supertrend indicator to confirm the trend direction. When both RSI and Supertrend indicators satisfy specific conditions simultaneously, the strategy generates buy or sell signals.
The RSI+Supertrend Trend-Following Trading Strategy effectively captures market trends and generates trading signals by combining the RSI and Supertrend technical indicators. The strategy’s advantages lie in its clear logic, ease of implementation, and consideration of both momentum and trend factors. However, the strategy also has some risks, such as frequent trading and limitations in parameter settings. To further improve the strategy’s performance, one can consider introducing other indicators, optimizing parameters, strengthening risk management measures, and continuously monitoring and adjusting the strategy.
/*backtest start: 2024-05-21 00:00:00 end: 2024-05-28 00:00:00 period: 45m basePeriod: 5m exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}] */ //@version=5 strategy("RSI + Supertrend Strategy", overlay=true) // Input parameters rsiLength = input.int(14, title="RSI Length") rsiOverbought = input.int(58, title="RSI Overbought Level") rsiOversold = input.int(38, title="RSI Oversold Level") supertrendLength = input.int(10, title="Supertrend Length") supertrendMultiplier = input.int(3, title="Supertrend Multiplier") // Calculate indicators rsiValue = ta.rsi(close, rsiLength) [supertrend, _] = ta.supertrend(supertrendLength, supertrendMultiplier) // Plot Supertrend on main chart plot(supertrend, color = supertrend < close ? color.green : color.red, linewidth = 2, title="Supertrend") // Plot RSI hline(rsiOverbought, "Overbought", color.red) hline(rsiOversold, "Oversold", color.green) plot(rsiValue, title="RSI", color=color.blue) // Strategy var float entryPrice = na // Long conditions longCondition = (rsiValue > rsiOverbought) and (supertrend < close) // Short conditions shortCondition = (rsiValue < rsiOversold) and (supertrend > close) // Exit conditions longExitCondition = (rsiValue < 50) and (supertrend > close) shortExitCondition = (rsiValue > 45) and (supertrend < close) // Execute strategy if (longCondition) strategy.entry("Long", strategy.long) entryPrice := close if (shortCondition) strategy.entry("Short", strategy.short) entryPrice := close if (longExitCondition and strategy.position_size > 0) strategy.close("Long") if (shortExitCondition and strategy.position_size < 0) strategy.close("Short") // Date and time range for backtest startDate = timestamp("2023-01-01 00:00") endDate = timestamp("2024-01-01 00:00") if (time < startDate or time > endDate) strategy.close_all()template: strategy.tpl:40:21: executing "strategy.tpl" at <.api.GetStrategyListByName>: wrong number of args for GetStrategyListByName: want 7 got 6