RSI Oversold Purchases with Fixed Investment and a Cooldown

Summary

This long-only accumulation strategy uses a 14-period Relative Strength Index (RSI) to identify oversold conditions. It buys when RSI is below a threshold and enough time has passed since the prior purchase; the described defaults are a threshold of 30 and a 30-day cooldown. Each purchase is associated with a fixed dollar amount, and chart annotations are intended to summarize purchases and holdings.

The document gives BTC/USDT futures backtest settings and describes configurable lookback dates, but it reports no performance results. The source appears to set a trading-period flag permanently on, and the time-based cooldown implementation may not match the stated duration when applied to the chart timeframe. The strategy has no sell or stop-loss rule and does not account for fees or slippage. Its oversold premise can lead to repeated buying during a sustained decline, while the cooldown can also delay entries after a new signal.

Key ideas

• A buy signal requires RSI below its oversold threshold and expiration of the cooldown.
• The strategy allocates a fixed dollar amount to each purchase.
• The method is long-only and provides no explicit exit or stop-loss rule.
• The document warns that sustained downtrends, trading costs, and missed signals can impair results.
• Backtest settings are supplied without reported performance evidence.

Tags

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