RSI Mean Reversion Bot Strategy

Mar 10, 2021

I started developing this strategy as a way to plug in and test values before defining them in the bots on 3Commas, Coinrule, and Quadency. None of those bots performed the same way my script did and I kept working on it until the strategy finally yielded the same simulated results when paired with the Tradingview bot on Quadency. I looked at all the different RSI strategies already published and saw what each was missing and changed it in mine to make it better:

1. Backtest an actual timeframe by date and time
2. Define the RSI price source
3. Fully manipulate the RSI length
4. Define a stop loss that works
5. Pick Long or Short, or both, based on market conditions. Or compare side by side to decide which you want.

Mar 16, 2021

Release Notes

Since I saw quite a few likes to my previous script I decided to try and make it better since it was taking me so much time tinkering and guessing the right upper and lower values. After I figured out that I could move the strategy to its own pane, I decided to snazz it up.

1. This provides you with the visualizations of the Fast vs Slow EMA as background colors showing bear and bull conditions
2. It shows a Stochastic RSI overlay to give you a visual check of whether or not you are setting the oversold and overbought values in the wrong region
3. I used the EMA and OHLC to create a smooth candle for the price with the RSI overlaid on it so it is easier to see
4. I added risk management to it with target profit and stop loss

I tested the strategy today on MANA with $450 and it has yielded $109 in actual profit which is close enough to what the strategy shows for the time period I let it run in Short Only mode. When I tried adding trailing to the stop loss and take profit functions I received the re-drawing warning so I abandoned that. This is a solid strategy that pairs the three leading strategies to help you with setting it up.

Word of caution to anyone new to using strategies on bots, the RSI strategy is not a set it and forget it strategy. It requires tinkering on a daily basis with the crypto market. The date range can be set into the future to avoid any shedding of tears, I typically have it run through 5 am and then check on it when I wake up and adjust accordingly. It has not failed me yet in the previous iterations and this one just makes the adjustments take 5 minutes as opposed to 20 minutes.

Mar 16, 2021

Release Notes

Published wrong version, this one has the smooth candle for price that is rescaled to work.

Mar 16, 2021

Release Notes

Forgot to update the showcase when I published the previous fix. I need sleep.

Mar 16, 2021

Release Notes

1. Fixed Risk Management bug that was not calculating exit prices correctly
2. Fixed the color of the RSI plot so it shows clearly
3. Added option to hide the Stochastic RSI background
4. Fixed the cross logic to maximize profits in entry and exit

May 30, 2021

Release Notes

I've updated this script with some of the updates I made to my other scripts, but still kept this one focused on a simple RSI strategy. The inputs only depend on the RSI inputs and back test dates. The other inputs for K, D, and EMA are only for visualization of the zone overlays to help visualize bear and bull markets.

The back test settings shown in this publication are for EOS on the week of 23 May through 30 May.

Chart Resolution = 30 minutes

Start Time = 24 May 2021 00:00
End Time = 31 December 2021 00:00

Trade Types = Long/Short
Stop Loss % = 2.27
Target Profit % = 12.18

RSI Length = 11
Source = Close
Overbought = 77
Oversold = 31

All other settings are default.