The textbook RSI strategy — buy when oversold (RSI < 30), sell when overbought (RSI > 70). Best in sideways markets.
Default parameters · BTCUSDT · 1d · 4 years · B&H +31.0%
This is the canonical RSI strategy described in J. Welles Wilder's 1978 book New Concepts in Technical Trading Systems. The Relative Strength Index oscillates between 0 and 100 — measuring whether recent price action has been dominated by gains or losses.
Entry signal: when the RSI drops below the oversold threshold (default 30), the asset is considered statistically oversold — a buy signal.
Exit signal: when the RSI rises above the overbought threshold (default 70), the asset is considered overbought — a sell signal.
The core assumption is mean reversion: that prices revert towards their average after extreme moves. This works beautifully in sideways and ranging markets but breaks down in strong trends, where the RSI can stay above 70 for weeks while the asset keeps grinding higher (or below 30 while it crashes further). For trending markets, consider RSI/SMA Cross instead — it adapts to changing conditions.
| Name | Default | Range | Description |
|---|---|---|---|
| RSI Period | 14 | 2–50 | Number of candles for RSI calculation. Default 14, the canonical Wilder value. |
| Oversold Level | 30 | 5–50 | RSI value below which a buy signal fires. Default 30. Lower = stricter, fewer trades. |
| Overbought Level | 70 | 50–95 | RSI value above which a sell signal fires. Default 70. Higher = let winners run longer. |
BTCUSDT · 1d · 4 years · default parameters · refreshed daily
Run with my own parameters →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 |
|---|---|---|---|---|
| MORPHOUSDT | +78.1% | +55.0pp | — | 2 |
| SKYUSDT | +69.7% | +63.2pp | — | 2 |
| ZECUSDT | +64.6% | +29.9pp | — | 2 |
| VIRTUALUSDT | +50.3% | +7.7pp | — | 2 |
| TAOUSDT | +45.4% | +76.6pp | 69 | 3 |
| UNIFDUSD | +38.0% | +86.5pp | 75 | 1 |
| RENDERUSDT | +36.6% | +87.6pp | — | 3 |
| XLMUSDT | +29.2% | +10.5pp | — | 11 |
| TRXUSDC | +26.7% | -23.7pp | — | 1 |
| MKRBTC | +18.9% | +49.0pp | 71 | 1 |
// Entry
if RSI(rsi_period) < oversold:
if position.is_flat:
BUY
// Exit
if RSI(rsi_period) > overbought:
if position.is_long:
SELLStrong directional trends are the killer. In a sustained bull market, the RSI can stay above 70 for months — you sell early and watch the price keep rising without you. In a crash, RSI can stay below 30 while the asset drops further. Combine with a trend filter (200 WMA, ATR Volatility) on Pro+ plans to avoid trading against strong regimes.
30/70 are the literature defaults and a good starting point. Some traders prefer 20/80 for stricter entries (fewer but higher-conviction trades), or 25/75 as a middle ground. For volatile assets like Bitcoin, slightly stricter thresholds (e.g. 25/75) often filter noise better.
Both use the RSI but in fundamentally different ways. This strategy uses fixed thresholds (30/70) — pure mean reversion. RSI/SMA Cross uses a dynamic threshold (the SMA of the RSI itself), which adapts to market conditions and works better in trending markets. They're complementary, not alternatives.
A momentum signal that triggers when the RSI crosses its own moving average — combining oversold detection with trend confirmation.
A faster RSI variant — the Stochastic RSI crosses its own moving average. More trades, more sensitivity, ideal for active markets.
Two EMAs plus an ATR-based neutral zone — like the commercial Larsson Line, but tunable, transparent, and backtested. Choose your bias.
Check out our Strategy Insights Reports — pre-baked deep-dives with historical results, comparisons, and market context.