TRADLEWARE-Gaussian Channel BTC — Strategy by cs_lev
By cs_lev
Performance Metrics
- Author: cs_lev
- Symbol: BINANCE:BTCUSDT
- Timeframe: 1 day
- Win Rate: 45.5%
- Profit Factor: 4.196
Description
Gaussian Channel + Stochastic RSI -- Tradelware edition (https://tradleware.com)This strategy combines a Gaussian Channel with a Stochastic RSI filter to capture momentum continuation in trending markets on the daily timeframe.How it worksThe Gaussian Channel is a smoothed price envelope built with an IIR (infinite impulse response) filter — a mathematically elegant alternative to a simple moving average. Instead of weighting recent bars linearly, the Gaussian filter applies a bell-curve weighting that produces very smooth, low-lag output. The channel is formed by adding and subtracting a filtered measure of true range (volatility) around the central filter line.The channel turns green when the filter is rising (uptrend) and red when it is falling (downtrend).EntryA long position is opened when all three conditions are true simultaneously:The channel is green (filter rising — uptrend confirmed)Price closes above the upper band (breakout above the channel)Stochastic RSI %K is either above 80 (strong momentum confirming the breakout) or below 15 (oversold dip within the uptrend)The dual Stochastic RSI threshold captures two different entry scenarios: a momentum breakout and a pullback-and-recover within an ongoing trend.ExitThe position is closed when either:Price closes back below the upper band (breakout has failed or the trend is cooling), orThe channel reverses from green to red (trend direction has flipped)A stop-loss is placed at the lower band and trails as the channel moves, providing a hard floor on losses if price drops sharply through both the upper and lower bands in the same move.ParametersPoles: 4 (filter smoothness — higher = smoother but more lag)Sampling Period: 144 (slow channel, suited to daily BTC trends)True Range Multiplier: 1.414 (controls channel width)Stochastic RSI overbought threshold: 80Stochastic RSI oversold threshold: 15Costs modelled0.1% commission per side (Binance taker fee), 3 ticks slippage, fills at next bar's open.Intended assets and timeframeDaily bars. Designed and validated on BTC/USDT (Binance). Likely applicable to other trending crypto assets; not validated on equities.Known limitationsUnderperforms in choppy or ranging markets — the upper band breakout condition generates whipsaws when price oscillates without directional conviction. The filter requires roughly 400+ bars of history to fully converge; results on very short histories may differ from the validated backtest.