BTC Mean Reversion with RSI and Bollinger Bands

Summary

This BTCUSD strategy combines RSI extremes with Bollinger Band breaches to seek reversals. It enters long when the 14-period RSI is below 30 and the close is below the lower band; optional shorts use RSI above 70 and a close above the upper band. Longs exit when RSI rises above 50 or price crosses above the band midpoint, with mirrored conditions for shorts. The script uses a 20-period band basis and a two-standard-deviation width by default.

The document reports a run on BTCUSD at a 10-second interval from February 16–23, 2026: 1,181 trades, of which 710 were profitable, or about 60.1%. Those figures describe the stated test only; no return, drawdown, fees, slippage, or benchmark information is supplied. The sample covers a short window, and a win rate alone does not establish profitability. The optional session filter is described as structural, though crypto trades around the clock, so its practical effect is unclear.

Key ideas

• Long entries require both an oversold RSI reading and a close below the lower Bollinger Band.
• Short entries are optional and require an overbought RSI reading with a close above the upper band.
• Positions exit when RSI recovers toward 50 or price crosses the Bollinger midpoint.
• The reported short-window test shows a 60.1% profitable-trade rate, without broader risk or cost metrics.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.