RSI Momentum (Cardwell regime)¶
What it does: Uses RSI as a momentum signal: buys strength while the daily trend is healthy. RSI is a 0-100 gauge of recent buying versus selling. Instead of buying low readings, this buys when 4-hour RSI rises through 55 while daily RSI is above 50, and sells when 4-hour RSI drops below 45, or at the stop-loss.
Style: Momentum · Difficulty: Intermediate · Risk: medium · Ready: 2 of 2 variants
When people use it: It tends to work in bull trends, where RSI tends to stay between 40 and 80.
Where it struggles: It struggles when RSI hovers around 50 in a sideways market.
Markets it was written for: BTC, ETH, majors. Timeframes: 4h with 1d regime.
Open it in the Strategy Library (on the Strategies page), pick a variant, adjust the settings and press Add to my strategies. It becomes your own strategy: edit, backtest or trade it like any other.
Long¶
Uses RSI as a momentum signal: buys strength while the daily trend is healthy.
Labels: Momentum, Long, Spot, Intermediate, Medium
- Direction: Buy (long) · Market: spot
- Trigger: On candle close · Main timeframe: Auto (4h)
Entry
- IF RSI(14) crosses above 55 (4h) and RSI(14) > 50 (1d)
- UNLESS ADX(14) < 20 (4h)
Exit: Indicator-Based Exit
- IF RSI(14) crosses below 45 (4h)
- Loss controls: Stop-loss % 6%
Settings
| Setting | Default | Editable | What changing it does |
|---|---|---|---|
| Entry RSI | 55 | Yes | The 4-hour RSI level that triggers a buy. Higher waits for stronger momentum (fewer, later entries); lower enters sooner. |
| Exit RSI | 45 | Yes | Sells when 4-hour RSI drops below this. Higher exits sooner and protects gains; lower stays in through deeper dips. |
How it works (as shown in the app)
- RSI is a 0-100 gauge of recent buying versus selling. Instead of buying low readings, this buys when 4-hour RSI rises through 55 while daily RSI is above 50, and sells when 4-hour RSI drops below 45, or at the stop-loss.
- It skips trades when ADX (trend strength) is below 20.
- It tends to work in bull trends, where RSI tends to stay between 40 and 80.
- It struggles when RSI hovers around 50 in a sideways market.
- Built for 4-hour candles with a daily check.
Short (perp)¶
Uses RSI as a momentum signal: shorts weakness while the daily trend is weak.
Labels: Momentum, Short, Futures, Medium, Backtest Only
- Direction: Sell (short) · Market: swap
- Trigger: On candle close · Main timeframe: Auto (4h)
Entry
- IF RSI(14) crosses below 45 (4h) and RSI(14) < 50 (1d)
- UNLESS ADX(14) < 20 (4h)
Exit: Indicator-Based Exit
- IF RSI(14) crosses above 55 (4h)
- Loss controls: Stop-loss % 6%
Settings
| Setting | Default | Editable | What changing it does |
|---|---|---|---|
| Entry RSI | 45 | Yes | The 4-hour RSI level that triggers a short. Lower waits for stronger downward momentum (fewer entries); higher enters sooner. |
| Exit RSI | 55 | Yes | Closes the short when 4-hour RSI rises above this. Lower exits sooner; higher stays in through bigger bounces. |
How it works (as shown in the app)
- RSI is a 0-100 gauge of recent buying versus selling. This shorts when 4-hour RSI falls through 45 while daily RSI is below 50, and buys back when 4-hour RSI rises above 55, or at the stop-loss.
- It skips trades when ADX (trend strength) is below 20.
- It tends to work in bear trends, where RSI tends to stay between 20 and 60.
- It struggles when RSI hovers around 50 in a sideways market.
- Built for 4-hour candles with a daily check.
- Shorting means you profit if the price falls and lose if it rises.
- Suggested leverage is at most 3x. On isolated margin, at 3x the exchange closes the position (liquidation) if the price moves about 33% against you, and you lose the margin you put into it. Keep your stop well inside that.
- For now this version runs in backtests only; paper and live futures trading are coming later.
Warnings¶
- "Backtest only for now: paper and live trading of shorts are coming later.": shown on short variants. They need perpetual or futures pairs.
- Some variants suggest leverage. On isolated margin a liquidation loses the margin in that position; keep any stop well inside the liquidation distance (the Trade Builder warns you when it isn't).
- Once added, the strategy's conditions get the usual condition checks. Messages show under each condition on the entry / exit conditions screen; setting errors start with the indicator's short name (for example "MACD: Fast must be between 1 and 1000") and block saving, while the other warnings never block saving and repeat in the strategy's Entry or Exit section. See the indicator pages below for each one.
- "You already have this strategy with these settings (…). Change a setting to add another copy.": shown on the variant's page in the Strategy Library when you already added this variant with the same settings.
Good to know¶
- After you add it, the strategy keeps the library's trigger and an Auto main timeframe; you can change both in the builder. Nothing links it back to the library, except that the builder still shows the library's explanations in the info bubbles.
- Changing a setting before adding it also changes the saved name, so you can tell copies apart.
- Past results don't predict future ones. Try it in a backtest and on paper before using real money.
- Indicators used: ADX, RSI.