RSI Overbought/Oversold

This system trades reversals using the Relative Strength Index. When RSI drops below the oversold level, it buys after closing any shorts. When RSI climbs above the overbought level, it sells after closing longs.

Testing indicates an average annual return of about 61%. It performs best in the crypto market.

Positions exit when RSI returns to a neutral zone or the stop-loss is reached.

Details

• Entry Criteria: RSI below OversoldLevel or above OverboughtLevel.
• Long/Short: Both directions.
• Exit Criteria: RSI crosses NeutralLevel or stop.
• Stops: Yes.
• Default Values:
  • RsiPeriod = 14
  • OverboughtLevel = 70
  • OversoldLevel = 30
  • NeutralLevel = 50
  • CandleType = TimeSpan.FromMinutes(5)
  • StopLossPercent = 2.0m
• Filters:
  • Category: Oscillator
  • Direction: Both
  • Indicators: RSI
  • Stops: Yes
  • Complexity: Basic
  • Timeframe: Intraday
  • Seasonality: No
  • Neural Networks: No
  • Divergence: Yes
  • Risk Level: Medium