MACD trend with ADX strength filter strategyvsRSI mean reversion strategy
MACD trend with ADX strength filter strategy: Take MACD long crossovers only when ADX confirms a trend actually exists. · RSI mean reversion strategy: Buy when the market is overextended below the mean, ride it back to fair value.
MACD trend with ADX strength filter strategy
Take MACD long crossovers only when ADX confirms a trend actually exists.
RSI mean reversion strategy
Buy when the market is overextended below the mean, ride it back to fair value.
Indicators
- MACD (12 / 26 / 9)
- ADX (period 14)
- RSI (period 14)
Timeframes
Bias
Long only
Long only
Market fit
Filtered, selective
Range-bound
Entry rules
- MACD line crosses above signal AND
- ADX(14) is above 20 — there's a real trend, not just chop.
- Enter long when RSI(14) prints below 30 — the textbook oversold threshold.
- Only one position at a time; the cooldown blocks immediate re-entry after an exit.
Exit rules
- MACD line crosses below signal.
- Hard 4% stop; 3% trailing stop locks in winners.
- Close the position when RSI(14) recovers above 70.
- Hard stop-loss at 3% below entry; take-profit at 5%.
Expected behavior
Trades less frequently than vanilla MACD because the ADX gate sits open only in directional regimes. Equity curve is flatter through chop and adds when a sustained trend kicks in.
Choppy zig-zag equity curve with frequent small wins and the occasional outlier loss when a sharp downtrend leaves RSI pinned in the oversold zone. Fits range-bound chop; struggles in strong directional regimes.
Complexity
Which one is right for you?
Derived from the bias, timeframe and indicator profile of each strategy — not a back-test forecast.
When to pick MACD trend with ADX strength filter strategy
- You expect filtered, selective — the thesis is "Take MACD long crossovers only when ADX confirms a trend actually exists."
- You want a long-only bot on 1h–1d candles with a balanced rule-set.
- You're comfortable monitoring 2 indicators (MACD (12 / 26 / 9), ADX (period 14)).
Take MACD long crossovers only when ADX confirms a trend actually exists.
When to pick RSI mean reversion strategy
- You expect range-bound — the thesis is "Buy when the market is overextended below the mean, ride it back to fair value."
- You want a long-only bot on 15m–4h candles with a balanced rule-set.
- You're comfortable monitoring 1 indicator (RSI (period 14)).
Buy when the market is overextended below the mean, ride it back to fair value.
MACD trend with ADX strength filter strategy
Take MACD long crossovers only when ADX confirms a trend actually exists.
RSI mean reversion strategy
Buy when the market is overextended below the mean, ride it back to fair value.
Related comparisons
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