Six-Month RSI Extremes and Rebound Trading Rules
Summary
The PlanB RSI Tracking Strategy uses a 14-period RSI and looks back over the prior six months to identify unusually high or low readings. It signals a sale when RSI previously exceeded the upper threshold and later falls below a lower threshold. It signals a purchase when the lookback low was below a threshold and RSI rebounds by more than two points from that low. The rules therefore combine a longer-term RSI extreme with a shorter-term change in momentum.
The document includes parameter values and a BTC/USDT futures backtest setup spanning about a year, but it does not report returns, drawdowns, or other test outcomes. The entry and exit thresholds are attributed to a PlanB article, while independent validation is presented as a goal rather than evidence. The strategy relies on one indicator, uses fixed parameters, and has no stated stop-loss or take-profit logic. The source also enters long and short positions on separate signals, so the written rules do not specify a complete risk-management or position-transition plan.
Key ideas
- A sell signal follows a six-month RSI high above 90 and a subsequent fall below 65.
- A buy signal follows a six-month RSI low below 50 and a rebound of more than two RSI points.
- The rules combine a historical RSI extreme with a shorter-term momentum shift.
- The document gives a BTC/USDT futures test period but no performance results.
- Single-indicator dependence, fixed thresholds, and absent stop-loss rules are material limitations.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.