Fast RSI Breakout Trading Strategy
This strategy trades RSI extremes using the fast RSI indicator and filters entries based on candle body size to avoid whipsaws. It aims for quick identification of overbought/oversold levels to capture reversals swiftly.
Strategy Logic:
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Calculate fast RSI and set overbought/oversold thresholds.
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Calculate EMA of candle body size for body filtering.
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Go long when RSI crosses above overbought line and body over half of EMA. Vice versa for short.
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Exit when RSI crosses back below original threshold and body over EMA.
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Min/max can provide additional signal verification.
Advantages:
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Fast RSI speeds up signal generation avoiding lag.
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Body size filters reduce insignificant candle noise.
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Min/max improves signal quality.
Risks:
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Body filtering may skip some valid signals.
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Whipsaws still possible for RSI in ranging markets.
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Strict risk management required for reversal trades.
In summary, this strategy combines fast RSI and body size filtering for quicker but more robust overbought/oversold detection. But over-filtering issues remain so prudent risk controls are still needed.
/*backtest
start: 2023-01-01 00:00:00
end: 2023-09-11 00:00:00
period: 2d
basePeriod: 1d
exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}]
*/
//@version=3
strategy(title = "Noro's Fast RSI Strategy v1.3", shorttitle = "Fast RSI str 1.3", overlay = true, default_qty_type = strategy.percent_of_equity, default_qty_value = 100, pyramiding = 5)
//Settings- 1