After all the trend strategies — meet the panic strategy. Buys panic bottoms where RSI, MA distance and volume all hit extremes at once.
Basis: 1409 user backtests · BTCUSDT · 1d · 4 years
Capitulation Finder is the platform's first mean-reversion strategy — every other strategy is trend- or cycle-following; this one is deliberately contrarian. It looks for capitulation events: rare moments where three extremes align on the same bar.
1. Momentum extreme — RSI in the oversold (or overbought) zone. 2. Mean-distance extreme — price is far below (or above) its moving average, beyond a % threshold. 3. Volume extreme — volume exceeds its rolling average by a multiplier.
Bullish capitulation (BUY): RSI ≤ oversold AND price < MA·(1−pct%) AND volume spike → a panic low, historically often a local bottom. Bearish capitulation (SELL): RSI ≥ overbought AND price > MA·(1+pct%) AND volume spike → a euphoria high, historically often a local top — closes the long.
It is long-only: bullish capitulation opens a position, bearish capitulation closes it, no shorting and no pyramiding. Because all three conditions must hit simultaneously, signals are deliberately rare (roughly 3–8 per year per asset on a daily timeframe, sometimes fewer). Below 30 trades a single backtest is anecdote, not evidence — test across multiple assets or extend the timeframe.
| Name | Default | Range | Description |
|---|---|---|---|
| RSI Length | 14 | 2–100 | Lookback for the RSI. |
| RSI Oversold | 30 | 5–49 | RSI at/below this = oversold extreme (bullish condition). Must be below overbought. |
| RSI Overbought | 70 | 51–95 | RSI at/above this = overbought extreme (bearish condition). |
| MA Type | 0 | 0–1 | Moving average type: SMA or EMA. EMA reacts faster (used in the Crypto-Tuned preset). |
| MA Length | 50 | 2–500 | Lookback for the moving average the price distance is measured against. |
| Distance from MA (%) | 5 | 0.5–50 | How far price must be from the MA to qualify as a mean-distance extreme. |
| Volume Multiplier | 1.2 | 1–10 | Volume must exceed its rolling average by this factor (spike filter). |
| Volume Average Length | 20 | 2–200 | Lookback for the rolling volume average. |
The pre-baked mini-backtest is refreshed daily — check back soon or start a live run in the Arena.
Run in Arena →Top-10 assets by average CAGR (1d interval), aggregated from community + platform backtests. Actual results depend on parameters and period.
| Asset | CAGR | vs B&H | ★ | Runs |
|---|---|---|---|---|
| HYPERUSDT | +786.4% | +851.5pp | — | 1 |
| NOMUSDT | +383.2% | +482.2pp | — | 1 |
| VIRTUALUSDT | +220.3% | +219.6pp | — | 1 |
| REDUSDT | +180.3% | +248.0pp | — | 1 |
| ZBTUSDT | +156.9% | +243.8pp | — | 1 |
| TNSRUSDT | +151.1% | +233.4pp | — | 1 |
| KAITOUSDT | +133.7% | +189.2pp | — | 1 |
| HUMAUSDT | +114.5% | +178.3pp | — | 1 |
| MORPHOUSDT | +101.0% | +110.0pp | — | 1 |
| BANANAS31USDT | +76.7% | +57.1pp | — | 1 |
// Bullish capitulation (BUY)
if rsi <= rsiOversold and close < ma*(1 - pctThreshold/100) and volume >= volAvg*volMultiplier:
if position.is_flat:
BUY
// Bearish capitulation (SELL)
if rsi >= rsiOverbought and close > ma*(1 + pctThreshold/100) and volume >= volAvg*volMultiplier:
if position.is_long:
SELLCapitulation events are deliberately rare. Three extreme conditions must align simultaneously — this typically happens 3–8 times per year on a daily timeframe, sometimes less. For statistical meaning we recommend testing across multiple assets or extending the timeframe.
On all assets with real volume — Crypto, Stocks, ETFs, Commodity ETFs. Forex is excluded because there is no centralized volume reporting.
Conservative for US stocks and ETFs on 1D. Crypto-Tuned for crypto pairs (shorter EMA, higher % threshold, stricter volume filter — matches higher crypto volatility). Aggressive only if Conservative gives too few trades — at the cost of more false signals.
No, long-only. Bullish capitulation opens a long position, bearish capitulation closes it. There is no shorting — the platform is long-only by design.
Check out our Strategy Insights Reports — pre-baked deep-dives with historical results, comparisons, and market context.