RSI Strategy Templates

Strategy Overview

These three strategies showcase different ways to use RSI in Reversion:

1. RSI Mean Reversion with Trend Filter — rsi_below_threshold / rsi_above_threshold entries filtered by ADX
2. Dual RSI Crossover — rsi_above_signalLine / rsi_below_signalLine for momentum timing
3. RSI + Bollinger Bands Confluence — RSI threshold + band touch for high-conviction reversals

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Strategy 1: RSI Mean Reversion with Trend Filter

Overview

Buy when RSI signals oversold in an uptrend, sell when RSI signals overbought in a downtrend. ADX filters out ranging markets.

When This Works Best

• Trending markets with pullbacks (ADX > 25)
• Assets that mean-revert from momentum extremes
• 1H to 1D timeframes

Algorithm Configuration

Setting	Value
Type	BOTH
Position Size	50% of equity (REL)
Order Type	MARKET
Timeout	COOLDOWN_ONLY, 3 bars

Long Entry Conditions

Group	Indicator	Signal	Threshold
Required	RSI	rsi_below_threshold	30
Required	ADX	adx_above_threshold	25

Long Exit Conditions

Setting	Value
Required	RSI · rsi_above_threshold · threshold: 50
Stop Loss	5% (REL), trailing enabled
Take Profit	10% (REL)

Short Entry Conditions

Group	Indicator	Signal	Threshold
Required	RSI	rsi_above_threshold	70
Required	ADX	adx_above_threshold	25

Short Exit Conditions

Setting	Value
Required	RSI · rsi_below_threshold · threshold: 50
Stop Loss	5% (REL), trailing enabled
Take Profit	10% (REL)

Recommended Parameters

Indicator	Parameter	Value	Notes
RSI	Period	14 bars	Standard lookback
RSI	Oversold	30	Long trigger
RSI	Overbought	70	Short trigger
ADX	Threshold	25	Trend filter

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Strategy 2: Dual RSI Crossover

Overview

Uses RSI’s signal line crossover to detect momentum shifts. Signal line is a smoothed RSI — crossovers signal acceleration/deceleration.

When This Works Best

• Momentum transitions
• Markets with clear directional moves
• 4H to 1D timeframes

Algorithm Configuration

Setting	Value
Type	BOTH
Position Size	40% of equity (REL)
Order Type	MARKET
Timeout	REGULAR, 2 bars

Long Entry Conditions

Group	Indicator	Signal	Threshold
Required	RSI	rsi_above_signalLine	—
Required	RSI	rsi_below_threshold	60

Long Exit Conditions

Setting	Value
Required	RSI · rsi_below_signalLine
Stop Loss	3% (REL)
Take Profit	—

Short Entry Conditions

Group	Indicator	Signal	Threshold
Required	RSI	rsi_below_signalLine	—
Required	RSI	rsi_above_threshold	40

Short Exit Conditions

Setting	Value
Required	RSI · rsi_above_signalLine
Stop Loss	3% (REL)
Take Profit	—

Recommended Parameters

Indicator	Parameter	Value	Notes
RSI	Period	14 bars	Momentum lookback
RSI	Signal Line	9 bars	Smoothed RSI

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Strategy 3: RSI + Bollinger Bands Confluence

Overview

Combines RSI oversold/overbought with Bollinger Band touches for high-conviction reversal entries.

When This Works Best

• Ranging or mean-reverting markets
• Assets with consistent volatility cycles
• 1H to 4H timeframes

Algorithm Configuration

Setting	Value
Type	BOTH
Position Size	30% of equity (REL)
Order Type	MARKET
Timeout	COOLDOWN_ONLY, 5 bars

Long Entry Conditions

Group	Indicator	Signal	Threshold
Required	RSI	rsi_below_threshold	30
Required	Bollinger Bands	price_below_lowerBand	—

Long Exit Conditions

Setting	Value
Required	RSI · rsi_above_threshold · threshold: 60
Stop Loss	4% (REL)
Take Profit	8% (REL)

Short Entry Conditions

Group	Indicator	Signal	Threshold
Required	RSI	rsi_above_threshold	70
Required	Bollinger Bands	price_above_upperBand	—

Short Exit Conditions

Setting	Value
Required	RSI · rsi_below_threshold · threshold: 40
Stop Loss	4% (REL)
Take Profit	8% (REL)

Recommended Parameters

Indicator	Parameter	Value	Notes
RSI	Period	14 bars	Lookback
BB	Period	20 bars	Volatility lookback
BB	Multiplier	2.0	Band width

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Backtesting Recommendations

• Test RSI period variations: Compare 9 vs 14 vs 21
• Measure threshold impact: Test 25/75 vs 30/70 vs 35/65
• Compare signal types: threshold vs signal line entries
• Evaluate ADX filter levels: Test 20, 25, 30

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Note

Pro Tip: When building strategies in Reversion, put your primary signal in the Required group and confirmation signals in Optional. This ensures the core signal must always be present while allowing flexibility in confirmation. Always backtest parameters per asset — crypto often benefits from adjusted settings due to higher volatility.