RSI and Dual EMA Oversold Entry, Overbought Exit Strategy

Summary

This strategy combines RSI thresholds with two exponential moving averages to identify long entries and exits. It calculates RSI, an EMA of closing prices, and an EMA of lows. A long entry occurs when the close is below both averages and RSI is oversold; the position closes when the close is above both averages and RSI is overbought. The stated parameters include an RSI length of 14, EMA lengths of 100 and 20, and thresholds of 30 and 70.

The document describes the approach as suited to fluctuating markets, while warning that persistent trends can produce repeated losing signals. It also notes that frequent trades may incur slippage and fees, and the strategy has no built-in position sizing or loss controls. The published backtest settings cover BTC_USDT futures on Binance over a one-month period, but the document provides no performance results. The source code's sell condition submits a short entry, despite the prose describing that signal as closing the long position, so the actual order behavior may differ from the written explanation.

Key ideas

• The strategy buys when RSI is oversold and the close is below both the closing-price EMA and low-price EMA.
• It exits according to the written description when RSI is overbought and the close is above both EMAs.
• The stated RSI thresholds are 30 and 70, with EMA lengths of 100 and 20.
• The document warns that persistent trends, trading costs, and absent risk controls can undermine results.
• The source code submits a short entry on its sell signal, which differs from the prose description.

Tags

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