Thesis
Two-condition confluence: lower-band stretch AND oversold RSI before taking the dip.
Fits Confluence setups — works best when the underlying market behavior matches the thesis, and breaks down when it doesn't. Pair with the backtester's walk-forward mode before committing real capital.
Fewer trades than either rule alone — the AND filter is strict — but higher conviction per signal. Long flat periods waiting for the two conditions to align, then a cluster of trades during real selloffs.
YAML rule-set
Paste this into the Strategy Designer's Text tab, or use the dashboard button above to load it as a template.
name: buy_the_dip
weight: 1.0
long_only: true
indicators:
bb20: {kind: bollinger, period: 20, std_mult: 2.0}
rsi14: {kind: rsi, period: 14}
entry:
combine: AND
rules:
- {lhs: {bar: close}, op: lt, rhs: {indicator: bb20, field: lower}}
- {lhs: {indicator: rsi14}, op: lt, rhs: {value: 35.0}}
exit:
combine: OR
rules:
- {lhs: {bar: close}, op: gt, rhs: {indicator: bb20, field: mid}}
risk:
stop_loss_pct: 0.03
take_profit_pct: 0.05
cooldown_bars: 4
Indicators
bb20Bollinger Bands (period 20, σ × 2)Volatility envelope around the 20-bar SMA. The lower band marks a 2-standard-deviation stretch below the mean.
rsi14RSI (period 14)14-bar momentum oscillator. The 35 threshold here is slightly looser than the textbook 30 so the rule fires alongside a fresh Bollinger stretch.
Entry conditions
The bot opens a position the bar after every condition below has fired.
- Close is below the lower Bollinger band AND
- RSI(14) is below 35 — momentum confirms the price stretch.
Exit conditions
Any of the conditions below will close the position.
- Close returns above the 20-bar mean (the middle band).
- Hard 3% stop; 5% take-profit.
Expected behavior
Fewer trades than either rule alone — the AND filter is strict — but higher conviction per signal. Long flat periods waiting for the two conditions to align, then a cluster of trades during real selloffs.
Equity-curve character, not a return forecast. Backtests are not promises about live performance.
Try it on your own data
Open the template in the dashboard to backtest it on BTC, ETH, or any CCXT symbol — or copy the YAML into the Strategy Designer to edit it first.
Past behavior on backtests is not a guarantee of future performance. Markets change; rule sets need re-validation. Trade at your own risk.