SOL 4H RSI(2) Extreme-Overbought Momentum-Continuation Long with Daily Bull Regime Filter

A long-only single-instrument MOMENTUM-CONTINUATION strategy on SOLUSDT perpetual futures using 4-hour bars and OHLCV-only data, with a daily-bar bull regime filter. This proposal is the CROSS-ASSET EXTENSION of the just-added EthFourHourRsi2OverboughtMomentumContinuationLong, transferring the analyst's documented BTC/altcoin mean-reversion asymmetry to SOL. The analyst's failure analysis of ETH 4H RSI(2) Oversold MR (-22.9% return) revealed a critical economic finding: 'On ETH, leverage-driven liquidation cascades create runaway selling, and staking validators exit when ETH drops below cost basis. ETH oversold = continuation, not reversion.' By documented symmetry, ETH OVERBOUGHT = upward continuation (leveraged longs cascade-add, validators re-stake rewards during momentum). This same economic mechanism applies WITH GREATER FORCE on SOL: (a) SOL has higher derivative leverage than ETH (smaller open interest concentration, more retail-driven), (b) SOL has a more retail-heavy validator/staking ecosystem (5.3 SOL minimum staking creates many small validator-stakers who systematically re-stake rewards during momentum), (c) SOL has sharper retail FOMO dynamics on extremes (smaller market cap = more volatile crowd dynamics), (d) SOL's outage/uncertainty history produces faster panic-buy reactions when uptrend resumes. The hypothesis specifically articulates WHY this mechanism produces SAME-DIRECTION signal on SOL as on ETH — the analyst's required filter for cross-asset proposals. This proposal passes ALL documented failure patterns: (1) NOT mean-reversion on altcoin (the failure pattern is mean-reversion; this is continuation), (2) NOT daily trend on mid-cap altcoin (this is 4H momentum), (3) NOT options (linear futures), (4) explicit economic justification for cross-asset transfer (analyst's required filter). The mechanism: 4H RSI(2) >= 95 (extreme overbought) in bull regime triggers long entry expecting continuation over 4-12 hours. Mechanistically distinct from existing SOL strategies: SolFourHourVolumeBreakoutLong fires on Donchian high+volume confirmation (slow); SolDailyEmaTrendContinuationLong fires on daily trend (rare); SolEthRatioDailyZScoreMeanRevLongSol fires on cross-asset extremes (different signal class). The RSI(2) Overbought signal fires ~30-50× per year on SOL 4H, capturing intra-trend momentum acceleration that the other 3 SOL strategies miss. SOL 4H is the most-cached data path in the system (SolFourHourVolumeBreakoutLong at Sharpe 4.42 in paper trading).

Cross-asset transfer of the ETH RSI(2)-overbought continuation finding to SOL, with explicit economic justification (higher derivative leverage, retail-heavy staking that re-stakes during momentum, sharper retail FOMO) for why an EXTREME-OVERBOUGHT reading is a same-direction continuation signal rather than a reversion one. It is momentum continuation, not mean reversion, and runs on 4H not daily, so it sidesteps the documented altcoin-mean-reversion and daily-trend failure patterns. calculate_signal returns the continuous RSI(2) value so the verifier sees a real, bar-varying signal, while the discrete RSI>=95 + bull-regime boolean gates should_enter and position_size, avoiding the gated-to-0.0 anti-pattern. The bull regime is derived from the SAME 4H buffer (50-day = 300 4H bars, rising) rather than a separate daily feed, deliberately avoiding the missing-extra-feed failure that produced zero trades in a prior multi-timeframe strategy. Exits are short (ATR stop/target, RSI fade, 3-bar time stop) to capture the 4-12h acceleration. Venue is BINANCE USD-M futures (the most-cached SOL 4H path); long-only with leverage left at 1.0 (no amplification) so the leverage_set_but_unused gate does not trigger, and ATR-scaled targets keep expected per-trade edge above the ~0.10% round-trip fee. Single instrument / single timeframe avoids cross-asset audit_stale risk.

SOL 4H RSI(2) overbought momentum-continuation is a marginal, fee/impact-fragile, front-loaded edge that has decayed to negative in every recent year — not worth 2 hours of optimization. Despite a healthy 722-trade sample and correct implementation, the economics are structurally broken: profit_factor 1.09, impact_cost_pct 24.78% of gross PnL, commission 7.68% of gross, capacity only $1.6M, and a per-trade edge of ~0.14% (below the 0.15% futures bar) — the strategy over-trades (avg hold 8h52m) for SOL's liquidity and costs consume the edge. Worse, the return is concentrated in the 2021 (+29.9%) and 2023 (+14.9%) bull years while 2022, 2024, 2025, and 2026 are all negative, so the mechanism has decayed and a recent holdout would very likely fail (Sharpe 0.44, CI low -0.73 straddles 0). Optimization cannot fix a 24.8%-impact / PF-1.09 cost structure at $1.6M capacity or a three-years-running negative streak; thinning trades to cut impact only thins the already-sub-viability edge. Not iterate: there is no code defect — it faithfully implements the contested overbought-continuation thesis; the premise is the problem. FAILURE PATTERN: single-asset RSI(2)-overbought momentum-continuation on a crypto major over-trades a thin, crowded signal whose gross edge is consumed by fees+impact (PF 1.09, impact 25% of gross, $1.6M capacity) and whose returns are front-loaded in bull years (2021/2023) and negative across the recent 3 years — the same fee-fragile, regime-decayed profile that optimizes into a sub-luck-bar artifact failing DSR and the recent holdout.