Thesis
Buy when the market is overextended below the mean, ride it back to fair value.
Fits Mean reversion 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.
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.
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: rsi_mean_revert
weight: 1.0
long_only: true
indicators:
rsi14: {kind: rsi, period: 14}
entry:
combine: AND
rules:
- {lhs: {indicator: rsi14}, op: lt, rhs: {value: 30.0}}
exit:
combine: OR
rules:
- {lhs: {indicator: rsi14}, op: gt, rhs: {value: 70.0}}
risk:
stop_loss_pct: 0.03
take_profit_pct: 0.05
cooldown_bars: 5
Indicators
rsi14RSI (period 14)Relative Strength Index — a 0-100 oscillator that compares the size of recent up-closes to the size of recent down-closes. Values under 30 are typically called oversold, over 70 overbought.
Entry conditions
The bot opens a position the bar after every condition below has fired.
- 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 conditions
Any of the conditions below will close the position.
- Close the position when RSI(14) recovers above 70.
- Hard stop-loss at 3% below entry; take-profit at 5%.
Expected behavior
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.
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.