📉 Oversold RSI Mean-Reversion Strategy

Systematic swing trading using RSI oversold bounce at support levels with strict risk management

Strategy Logic:
Entry Conditions (All Must Be True):
  1. RSI(14) drops below 30 (oversold condition)
  2. Price reaches or breaks key support level (20-day low)
  3. Bullish reversal candle forms (close > open, low tests support)
  4. RSI crosses back above 30 (momentum recovery signal)
Exit Rules:
  1. Stop Loss: 2% below entry (protects capital from breakdown)
  2. Take Profit 1: 3% gain (1.5:1 R:R, scales out 50% of position)
  3. Take Profit 2: 5% gain (2.5:1 R:R, exits remaining 50%)
  4. Trailing Stop: After TP1 hit, stop moves to breakeven
Risk Management:
  • Max 20% of capital per position (prevents overconcentration)
  • No entries during strong downtrends (20-day MA declining)
  • Requires minimum 2:1 reward-to-risk setup
Back to Console

Simulation Settings

Start: $10,000 Max position: 20% capital Stop loss: -2% TP1: +3% (50% exit) TP2: +5% (final exit)

Performance Summary

Click "Run Simulation" to start

Daily Equity Curve

Trade Log