Bitcoin Mean Reversion with RSI and Bollinger Bands
Summary
This BTCUSD strategy looks for reversals after unusually weak or strong price moves. It buys when the RSI is below its oversold threshold and the close is below the lower Bollinger Band; optional short entries require an overbought RSI and a close above the upper band. The bands use a moving-average center and a standard-deviation width. Longs exit when RSI recovers above its midpoint threshold or price crosses above the center band, with mirrored conditions for shorts.
The document reports a run on BTCUSD at a ten-second interval over the stated February 2026 data window, with 1,181 trades and 710 profitable trades. Those figures describe one particular historical run, not evidence of net profitability: costs, drawdown, returns, and out-of-sample results are not supplied. The optional session filter may also exclude periods depending on the chart’s market-session definition, despite Bitcoin trading continuously. Fast-bar results may be especially sensitive to execution assumptions and trading costs.
Key ideas
- Long entries require both a low RSI reading and a close below the lower Bollinger Band.
- Optional short entries mirror the long rules with an elevated RSI and a close above the upper band.
- Positions close when RSI returns toward its midpoint or price crosses the Bollinger center line.
- The document reports trade counts and profitable trades for one short-interval BTCUSD run, but omits broader performance and cost measures.
- The session filter and execution assumptions can materially affect results on continuously traded crypto markets.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.