RSI and MA with Trailing Stop Loss and Take Profit (by Coinrule)

2022년 12월 22일

The relative strength index is a momentum indicator used in technical analysis. It measures the speed and magnitude of a coin's recent price changes to evaluate overvalued or undervalued conditions in the price of that coin. The RSI is displayed as an oscillator (a line graph essentially) on a scale of zero to 100. When the RSI reaches oversold levels, it can provide a signal to go long. When the RSI reaches overbought levels, it can mark a good exit point or alternatively, an entry for a short position. Traditionally, an RSI reading of 70 or above indicates an overbought situation. A reading of 30 or below indicates an oversold condition.

A moving average (MA) calculates the average of a selected range of prices, usually closing prices, by the number of periods in that range. Essentially it is used to help smooth out price data by creating a constantly updated average price.

The Strategy enters and closes trades when the following conditions are met:

Entry Conditions:
RSI is greater than 50
MA9 is greater than MA50
RSI increases by 5

Exit Conditions:
Price increases by 1% trailing
Price decreases by 2% trailing


This strategy is back-tested from 1 January 2022 to simulate how the strategy would work in a bear market. The strategy provides good returns.

The strategy assumes each order is using 30% of the available coins to make the results more realistic and to simulate you only ran this strategy on 30% of your holdings. A trading fee of 0.1% is also taken into account and is aligned to the base fee applied on Binance.