Automate contrarian entries when prices stretch beyond statistical norms. Execute systematic reversals with configurable bands and exit triggers across multiple exchanges.
410k+
traders using systematic strategies
1.2M+
contrarian entries executed
22+
Exchanges Supported
Markets often overreact to news and sentiment creating temporary price dislocations that eventually correct. A mean reversion bot systematically identifies when assets trade beyond normal ranges and enters contrarian positions expecting prices to snap back toward historical averages. You configure the statistical bands and exit conditions while the system monitors multiple timeframes for optimal entry points.
The platform calculates standard deviations from moving averages to identify extreme price movements. When BTC drops 2.5 standard deviations below its 20-day average the system can trigger buy orders expecting reversion. You might set rules that buy when RSI falls below 25 while price touches the lower Bollinger band then exit when RSI recovers above 60.
Rather than relying on single indicators your automation can require multiple confirmations before entering contrarian trades. Rules might demand that 1-hour RSI shows oversold while 4-hour MACD remains bullish and daily support levels hold. This layered approach filters false signals while maintaining systematic execution.
Contrarian entry conditions
You define how far prices must stretch from their average before triggering entries. A conservative approach might require 1.5 standard deviations while aggressive strategies could wait for 3 standard deviation moves. The system calculates these bands continuously across your chosen timeframes.
Exit timing for mean reversion
Successful contrarian trading depends on disciplined exits when prices return toward normal ranges. Your rules can close positions when RSI normalizes, when price reaches the moving average, or after predetermined time limits to avoid extended drawdowns.
Bollinger Band Mean Reversion
Buys when price touches lower Bollinger band with RSI below 30 on 4-hour charts. Exits when price crosses back above the middle band or RSI exceeds 70. Classic statistical reversion play.
RSI Oversold Rebound
Enters long positions when RSI drops below 25 on daily timeframe while maintaining stop loss at recent swing low. Exits when RSI recovers above 65 or after 7 days maximum hold.
Range Bound Reversal
Identifies horizontal support and resistance levels then buys near support with tight stops. Sells near resistance or when range breaks. Works best in sideways markets.
VWAP Reversion Scalper
Fades moves that extend more than 2% from VWAP on intraday charts. Quick entries with 0.5% profit targets and 0.3% stop losses. High frequency contrarian approach.
Post-Earnings Mean Reversion
Targets stocks that gap significantly after earnings expecting partial reversion within 3-5 days. Enters after initial volatility settles with defined risk parameters.
Bollinger Band Mean Reversion
Buys when price touches lower Bollinger band with RSI below 30 on 4-hour charts. Exits when price crosses back above the middle band or RSI exceeds 70. Classic statistical reversion play.
RSI Oversold Rebound
Enters long positions when RSI drops below 25 on daily timeframe while maintaining stop loss at recent swing low. Exits when RSI recovers above 65 or after 7 days maximum hold.
Range Bound Reversal
Identifies horizontal support and resistance levels then buys near support with tight stops. Sells near resistance or when range breaks. Works best in sideways markets.
VWAP Reversion Scalper
Fades moves that extend more than 2% from VWAP on intraday charts. Quick entries with 0.5% profit targets and 0.3% stop losses. High frequency contrarian approach.
Post-Earnings Mean Reversion
Targets stocks that gap significantly after earnings expecting partial reversion within 3-5 days. Enters after initial volatility settles with defined risk parameters.
Funding Rate Mean Reversion
Monitors perpetual funding rates and enters contrarian positions when rates reach extremes. Expects funding imbalances to normalize over 8-24 hour periods.
Support and Resistance Bounce
Identifies key horizontal levels and enters mean reversion trades when price approaches with confirmation from volume and momentum indicators. Systematic level trading.
CCI Mean Reversion
Uses Commodity Channel Index to identify overbought and oversold extremes beyond +100 and -100 levels. Enters contrarian positions expecting CCI to revert toward zero.
Intraday Mean Reversion
Scalps hourly chart reversals using short-term moving averages and momentum oscillators. Quick entries and exits within same trading session targeting small consistent profits.
ETF Pair Mean Reversion
Trades relative value between correlated ETFs when their price ratio deviates from historical norms. Long underperformer, short outperformer expecting convergence.
Contrarian strategies face the risk that trends continue longer than expected requiring careful position sizing and stop losses. Your rules can limit position size to 2% of portfolio per trade while setting stops at recent swing highs or lows. Time-based exits prevent holding losing positions through extended trends. The system tracks win rates and average holding periods to optimize your parameters.
Before deploying live capital you can test your parameters against historical data to understand typical drawdowns and recovery periods. The platform shows how your Bollinger band settings would have performed across different market regimes. This analysis helps calibrate your deviation thresholds and exit timing for current market conditions.
The principles apply across crypto, stocks, and forex markets with different optimal parameters for each asset class. Crypto might require wider bands due to higher volatility while stocks could use tighter ranges. Your automation can run different configurations simultaneously across Binance, Trading212, and other connected venues.
Advanced implementations can trade relative value between correlated assets when their price relationship deviates from historical norms. If ETH typically trades at 0.065 BTC but drops to 0.060 the system might long ETH and short BTC expecting the ratio to normalize. These market-neutral approaches reduce directional risk.
Launch BotFAQ
Henrik L.
Sofia M.
Marcus T.
Elena K.
Viktor P.
Natalie R.
Successful contrarian automation requires multiple confirmation signals rather than relying on single indicators. Your rules might combine RSI oversold readings with Bollinger band touches and volume confirmation before triggering entries. This layered approach reduces false signals while maintaining systematic execution discipline.
The effectiveness of strategies varies significantly across different market environments requiring adaptive approaches. During trending markets you might widen deviation bands or reduce position sizes while range-bound periods could use tighter parameters. Some traders disable rules entirely during strong directional moves.
Advanced implementations monitor relationships between correlated assets and trade when these relationships deviate from historical norms. If gold and silver typically move together but diverge significantly the system might fade the divergence expecting convergence. These relative value trades often provide more stable returns than directional bets.
Rather than optimizing parameters on entire historical datasets walk-forward testing uses rolling windows to simulate real-world performance. This approach reveals how your Bollinger band periods and deviation thresholds would have adapted over time preventing overfitting to specific market conditions.
Strategies work best as components within diversified trading approaches rather than standalone systems. Your automation can allocate a portion of capital to contrarian trades while maintaining trend-following and momentum strategies in other positions. This balance smooths overall portfolio returns.
Market microstructure evolves over time requiring periodic review of your parameters and performance metrics. The platform tracks key statistics like win rate, average holding period, and maximum adverse excursion to identify when recalibration might improve results. Regular analysis ensures your systematic approach adapts to changing market dynamics.
Go Live
