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Backtesting Arena

Backtesting Arena

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Strategies›BTC Signal — RSI/SMA
BTC Signal — RSI/SMA master

BTC Signal — RSI/SMA Strategy

Trade altcoins using BTC's own RSI/SMA momentum regime — enter alts only when BTC's macro trend is on, exit when it flips.

Try in Arena →View Live Insights →

Quick Facts

Type:
Momentum · Trend Following
Plan:
Pro
Asset Classes:
Crypto
Indicators:
RSI · SMA

Community Performance

ⓘ
CAGR
+1.5%
Win Rate
44%
Max DD
-71%

Basis: 1621 user backtests · BTCUSDT · 1d · 4 years

How It Works

This is a cross-asset proxy strategy: it computes the same RSI(14) / SMA(14) crossover signal as the canonical RSI/SMA Cross strategy, but always on BTC/USDT — and then executes the trades on the alt you selected (e.g. ETH, SOL, ADA, anything except BTC).

The rationale: in our 2018-2026 bulk backtest of 79 BTC-quoted altcoin pairs on 1W RSI/SMA, 92 % of alts had negative B&H returns measured in BTC over that period. The RSI/SMA strategy beat plain holding in 87 % of those pairs by exiting alts when BTC's trend regime weakens. Using BTC's own signal — instead of each alt's idiosyncratic RSI — pushes that idea further: if BTC is the bellwether for crypto-wide risk-on/risk-off, then BTC's regime is a stronger filter than each alt's noisy own indicator.

Entry signal: when BTC's RSI crosses above its SMA → buy the selected alt at the current candle close. Exit signal: when BTC's RSI crosses below its SMA → sell the alt.

Periods are fixed at 14/14 (Wilder default) and not user-tunable in v1.

Note: the strategy is unavailable for BTCUSDT itself — running BTC's signal on BTC would just be the standard RSI/SMA Cross strategy.

Entry & Exit Rules

▲Entry

  • ●BTC/USDT RSI(14) crosses above SMA(RSI, 14)
  • ●Position is currently flat
  • ●Asset is a non-BTC crypto pair

▼Exit

  • ●BTC/USDT RSI(14) crosses below SMA(RSI, 14)
  • ●Position is currently long

Live Backtest

The pre-baked mini-backtest is refreshed daily — check back soon or start a live run in the Arena.

Run in Arena →

Performance per Asset

Top-10 assets by average CAGR (1d interval), aggregated from community + platform backtests. Actual results depend on parameters and period.

AssetCAGRvs B&H★Win%YearsRuns
DOGEUSDT+47.2%-20.0pp—41%7.017
SOLUSDT+45.7%-22.4pp7040%5.912
ETCUSDT+24.4%+19.1pp—40%8.118
FTMUSDT+23.1%-81.2pp—38%5.614
BCHUSDT+22.9%+19.9pp—39%6.616
MATICUSDT+22.8%-88.0pp—36%5.418
ETHUSDT+20.0%-22.9pp—35%8.518
BNBUSDT+19.8%-61.4pp—36%8.518
XLMUSDT+19.8%+4.4pp—38%8.118
CHZUSDT+17.2%-1.5pp—40%6.817
pp = delta vs avg-B&H · ★ = robustness score 0-100 (CAGR / win-rate / drawdown / consistency).Full Insights →

Pseudo-Code

expand
// Compute on BTC/USDT (always, regardless of selected asset)
btc_rsi := RSI(BTC.close, 14)
btc_sma := SMA(btc_rsi, 14)

// Trades execute on the SELECTED alt's close
if btc_rsi crosses_above btc_sma:
  if position.is_flat:
    BUY alt at alt.close

if btc_rsi crosses_below btc_sma:
  if position.is_long:
    SELL alt at alt.close

Strengths & Weaknesses

+Strengths

  • ●Simple regime filter: only buy alts when BTC's own trend is on
  • ●Aligns alt timing with the asset class's strongest leading indicator (BTC itself)
  • ●Reduces idiosyncratic alt-noise — BTC's signal series is calmer than most alts'
  • ●Combines naturally with the Altcoin Season filter for double confirmation

−Weaknesses

  • ●Misses alt-specific bull runs that decouple from BTC (some L2 / meme cycles)
  • ●Pure correlation play — if BTC drops in a flash crash, the alt sells too even if its own structure is fine
  • ●BTC's macro signal is identical for ALL alts at any given time — no per-alt nuance
  • ●Periods are not tunable in v1 (only 14/14)

Frequently Asked Questions

Why use BTC's signal instead of the alt's own RSI/SMA?+

Most alts are highly correlated with BTC, but their own RSI/SMA series carry more noise (lower liquidity, sharper wicks, idiosyncratic events). Using BTC's signal as the regime filter means you trade fewer false breakouts and align with the asset class's primary leading indicator. The tradeoff is missing alt-only rallies (rare but real).

Why are the 14/14 periods not tunable?+

Fixing 14/14 keeps the strategy aligned with the canonical RSI/SMA Cross definition (Wilder's original 14 plus a 14-period SMA on top). If you need different periods, run the standard RSI/SMA Cross strategy directly on the alt. Future versions may expose tuning if there's demand.

Can I run this on BTCUSDT?+

No. Running BTC's signal on BTC is identical to the standard RSI/SMA Cross strategy — pick that one for BTCUSDT instead. The selector blocks BTCUSDT for this strategy.

Can I combine it with filters?+

Yes — all four entry filters (200 WMA, ATR Volatility, Altcoin Season, Min. Profit Guard) are available. Altcoin Season pairs especially well thematically: it adds a second layer of regime confirmation focused on alt-vs-BTC strength.

Related Strategies

RSI / SMA Cross

A momentum signal that triggers when the RSI crosses its own moving average — combining oversold detection with trend confirmation.

RSI · SMA

Fear & Greed Cadence

Trade the market mood, not the noise — average sentiment over a defined cadence window. A unique sentiment-driven strategy for crypto.

Fear & Greed Index · SMA

Don't want to backtest yourself?

Check out our Strategy Insights Reports — pre-baked deep-dives with historical results, comparisons, and market context.

📊 View Reports →

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