RSI 30/70 Reversal with Trend Veto¶
What it does: Buys when RSI recovers from oversold, but not in a downtrend; sells near overbought. RSI is a 0-100 gauge of recent buying versus selling. This buys when RSI climbs back above 30, unless the price is below its 200-day average, and sells when RSI drops back below 70 or at the stop-loss.
Style: Mean reversion · Difficulty: Beginner · Risk: medium · Ready: 2 of 2 variants
When people use it: It tends to work in sideways markets and on pullbacks in uptrends.
Where it struggles: It struggles in crashes (RSI stays low), and in strong trends where RSI never reaches 70, so the exit relies on the stop.
Markets it was written for: BTC, ETH, majors. Timeframes: 1h (15m-4h) with 1d trend veto.
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¶
Buys when RSI recovers from oversold, but not in a downtrend; sells near overbought.
Labels: Mean Reversion, Long, Spot, Beginner, Medium
- Direction: Buy (long) · Market: spot
- Trigger: On candle close · Main timeframe: Auto (1h)
Entry
- IF RSI(14) crosses above 30 (1h)
- UNLESS Price < EMA(200) (1d)
Exit: Indicator-Based Exit
- IF RSI(14) crosses below 70 (1h)
- Loss controls: Stop-loss % 5%, Break-even stop after % 2%
Settings
| Setting | Default | Editable | What changing it does |
|---|---|---|---|
| RSI length | 14 | Yes (sets 2 fields) | How many candles RSI looks back. Shorter makes RSI jumpier, so it reaches the levels more often (more trades); longer makes it calmer (fewer trades). Changes both the entry and the exit. |
| Oversold level | 30 | Yes | The low RSI level. Higher (closer to 40) trades more often on milder dips; lower waits for heavier selling. |
| Overbought level | 70 | Yes | The high RSI level. Lower takes profit sooner; higher holds for bigger moves but may never get there. |
| Daily trend average | 200 | Yes | The trend filter. Shorter allows trades sooner after a trend change; longer is stricter. |
How it works (as shown in the app)
- RSI is a 0-100 gauge of recent buying versus selling. This buys when RSI climbs back above 30, unless the price is below its 200-day average, and sells when RSI drops back below 70 or at the stop-loss.
- After a 2% gain the stop moves up to your entry price.
- It tends to work in sideways markets and on pullbacks in uptrends.
- It struggles in crashes (RSI stays low), and in strong trends where RSI never reaches 70, so the exit relies on the stop.
- Trades on 1-hour candles (15 minutes to 4 hours also work), so fees matter.
Short (perp)¶
Shorts when RSI drops back from overbought, but not in an uptrend.
Labels: Mean Reversion, Short, Futures, Medium, Backtest Only
- Direction: Sell (short) · Market: swap
- Trigger: On candle close · Main timeframe: Auto (1h)
Entry
- IF RSI(14) crosses below 70 (1h)
- UNLESS Price > EMA(200) (1d)
Exit: Indicator-Based Exit
- IF RSI(14) crosses above 30 (1h)
- Loss controls: Stop-loss % 4%, Break-even stop after % 2%
Settings
| Setting | Default | Editable | What changing it does |
|---|---|---|---|
| RSI length | 14 | Yes (sets 2 fields) | How many candles RSI looks back. Shorter makes RSI jumpier, so it reaches the levels more often (more trades); longer makes it calmer (fewer trades). Changes both the entry and the exit. |
| Oversold level | 30 | Yes | Closes the short when RSI climbs back above this. Higher closes sooner with smaller gains; lower waits for a deeper fall that may not come (the stop then does the work). |
| Overbought level | 70 | Yes | The high RSI level that triggers a short when RSI falls back below it. Lower trades more often; higher waits for stronger rallies (fewer trades). |
| Daily trend average | 200 | Yes | The trend filter. Shorter allows trades sooner after a trend change; longer is stricter. |
How it works (as shown in the app)
- RSI is a 0-100 gauge of recent buying versus selling. This shorts when RSI falls back below 70, unless the price is above its 200-day average, and buys back when RSI rises back above 30 or at the stop-loss.
- After a 2% gain the stop moves to your entry price.
- It tends to work in sideways markets and on bounces in downtrends.
- It struggles in strong rallies (RSI stays high), and in strong downtrends where RSI never reaches 30, so the exit relies on the stop.
- Trades on 1-hour candles (15 minutes to 4 hours also work), so fees matter.
- Shorting against a crypto bull run is a classic way to lose money fast; the 200-day filter is essential.
- Shorting means you profit if the price falls and lose if it rises.
- Suggested leverage is at most 2x. On isolated margin, at 2x the exchange closes the position (liquidation) if the price moves about 49.7% 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: EMA, RSI.