Introducing This Week’s RSI Strategy
Hi there, and welcome to Coinrule’s ninth Strategy of the Week video. This week’s strategy uses the RSI along with several new moving-average periods we’ve recently integrated. The strategy is available as a pre-designed template on Coinrule, making it very easy to set up and start trading. It also comes with an associated TradingView script, so you can backtest it across any timeframe you want.
The Relative Strength Index (RSI) is a momentum indicator that measures the speed and magnitude of recent price movements to identify overvalued or undervalued conditions. It’s shown as an oscillator ranging from 0 to 100. Oversold levels can signal long entries, while overbought levels can indicate exits or short opportunities. Traditionally, RSI above 70 is considered overbought, and below 30 oversold.
A moving average smooths price data by creating a continuously updated average price. This provides clearer signals for trend direction and trade timing.
The strategy has two entry conditions: the RSI must be above 50 and increasing by five points, and the MA9 must be above the MA50. For exits, the strategy uses trailing levels a 1% trailing take profit and a 2% trailing stop loss, both of which adapt dynamically to price strength.
Setting Up and Testing the Strategy
To run the strategy, go to the Create Rule page and select an exchange. Here we’ll use the demo exchange. Search for the template called “RSI and MA Strategy with Trailing Stop Loss and Take Profit,” select it, and the full structure will load automatically.
Next, decide whether you want to run the strategy on all coins or on a specific one. To optimise it, test the TradingView script on different timeframes and charts. For example, on AVA/USDT in the 30-minute timeframe, the strategy produced a 98% net profit over 280 trades, based entirely on bear-market data. Other timeframes like 15 minutes or 5 minutes, performed much worse, making the 30-minute timeframe the best choice for this pairing.
Back on Coinrule, set your coin, timeframe, and allocation. For example, buying $100 with your USDT wallet. The take-profit and stop-loss settings are already built into the template. Set how many times you want the rule to execute, such as 100 times, then launch it. After confirming the summary, your strategy will go live.
Thank you for watching this Strategy of the Week video, I look forward to seeing what you build next.
https://www.youtube.com/watch?v=AP1TLQxSHjM
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