PlanB RSI Strategy Using Six-Month Extremes and Rebounds
Summary
This BTC futures strategy uses RSI extremes over a recent lookback to define reversal entries. A short signal occurs when the RSI high over the prior six bars exceeded a high threshold and current RSI falls below a lower threshold. A long signal requires the prior six-bar RSI low to have fallen below a chosen level, followed by a rebound of two RSI points from that low. Despite the source comments referring to six months, the code applies a lookback of six chart bars, so the effective horizon depends on the chart timeframe.
The source also offers an optional stop-loss and take-profit exit, disabled by default, with separate levels for long and short positions. The published parameters and BTC/USDT futures test dates are given, but the document supplies no performance results or risk-adjusted evaluation. It therefore describes entry logic rather than evidence that the rules are profitable; the brief lookback and threshold choices may also make behavior timeframe-sensitive.
Key ideas
- Short entries require a recent RSI extreme followed by a drop below a separate threshold.
- Long entries require a recent RSI low and a rebound from that low.
- Although comments describe six months, the code uses six bars, making the lookback depend on the chart timeframe.
- Optional stop and target orders are disabled by default, and no backtest performance results are reported.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.