Bollinger Lower-Band Tag + RSI Oversold¶
What it does: Buys sharp dips in sideways markets and sells when price returns to its usual level. This buys when the price drops below the lower Bollinger Band (a line marking an unusually low price compared with the last 20 hourly candles) while RSI is below 30 (RSI is a 0-100 gauge of recent selling; below 30 means heavy selling).
Style: Mean reversion · Difficulty: Beginner · Risk: medium · Ready: 2 of 2 variants
When people use it: It tends to work when the market moves sideways in a range, bouncing between highs and lows.
Where it struggles: It struggles in strong downtrends and sudden crashes: the price can keep falling after it buys. The bounce wait helps but does not prevent this.
Markets it was written for: BTC, ETH, majors. Timeframes: 1h (15m-4h).
Open it in the Strategy Library (on the Strategies page), pick a variant, adjust the settings and press Add to my strategies. It becomes your own strategy: edit, backtest or trade it like any other.
Long¶
Buys sharp dips in sideways markets and sells when price returns to its usual level.
Labels: Mean Reversion, Long, Spot, Beginner, Medium
- Direction: Buy (long) · Market: spot
- Trigger: On candle touch · Main timeframe: Auto (1h)
Entry
- IF Price crosses below BB(20,2) Lower band (1h) and RSI(14) < 30 (1h)
- UNLESS ADX(14) > 25 (1h)
- Trailing entry %: 0.5%
Exit: Indicator-Based Exit
- IF Price touches BB(20,2) Middle band (1h)
- Min profit: 0.2% (exit conditions only close once the trade is this far in profit after fees)
- Loss controls: Stop-loss % 4%
Settings
| Setting | Default | Editable | What changing it does |
|---|---|---|---|
| Band width | 2 | Yes (sets 2 fields) | How far the outer bands sit from the average. Lower puts them closer, so smaller moves count and it trades more often. Higher waits for rarer, deeper moves, so fewer trades. Changes the bands used for both the entry and the exit. |
| RSI oversold level | 30 | Yes | The RSI level that counts as heavy selling. Higher (closer to 40) lets more dips qualify: more trades, weaker signals. Lower (closer to 20) only buys heavy sell-offs: fewer trades, and some of those dips keep falling. |
| Bounce before entry % | 0.5 | Yes | After the signal, the bot waits for the price to turn back by this much before entering. Higher waits for more proof the move has turned, but enters at a worse price and can miss quick turns; lower (or 0) enters sooner, with more risk of catching a move that keeps going. |
| Stop-loss % | 4 | Yes | Closes the trade if the price moves this far against your entry. Tighter limits each loss but gets hit more often by normal swings; wider gives the trade more room but each losing trade costs more. If you use leverage, keep it well inside your liquidation distance. |
How it works (as shown in the app)
- This buys when the price drops below the lower Bollinger Band (a line marking an unusually low price compared with the last 20 hourly candles) while RSI is below 30 (RSI is a 0-100 gauge of recent selling; below 30 means heavy selling).
- It then waits for a small bounce before buying, and sells when the price touches the middle band (the 20-candle average).
- It skips trades when ADX is above 25. ADX measures trend strength, so this avoids buying into a strong one-way move.
- It tends to work when the market moves sideways in a range, bouncing between highs and lows.
- It struggles in strong downtrends and sudden crashes: the price can keep falling after it buys. The bounce wait helps but does not prevent this.
- Profits per trade are usually small, so exchange fees take a noticeable share. Check your fee rate.
- Built for 1-hour candles (15 minutes to 4 hours also work). The backtest estimates touches that happen inside a candle, so live fills may differ.
Short (perp)¶
Shorts sharp spikes in sideways markets and closes when price returns to its usual level.
Labels: Mean Reversion, Short, Futures, Medium, Backtest Only
- Direction: Sell (short) · Market: swap
- Trigger: On candle touch · Main timeframe: Auto (1h)
Entry
- IF Price crosses above BB(20,2) Upper band (1h) and RSI(14) > 70 (1h)
- UNLESS ADX(14) > 25 (1h)
- Trailing entry %: 0.5%
Exit: Indicator-Based Exit
- IF Price touches BB(20,2) Middle band (1h)
- Min profit: 0.2% (exit conditions only close once the trade is this far in profit after fees)
- Loss controls: Stop-loss % 3%
Settings
| Setting | Default | Editable | What changing it does |
|---|---|---|---|
| Band width | 2 | Yes (sets 2 fields) | How far the outer bands sit from the average. Lower puts them closer, so smaller moves count and it trades more often. Higher waits for rarer, deeper moves, so fewer trades. Changes the bands used for both the entry and the exit. |
| RSI overbought level | 70 | Yes | The RSI level that counts as heavy buying. Lower (closer to 60) lets more rallies qualify: more shorts, weaker signals. Higher only shorts extreme spikes: fewer trades. |
| Bounce before entry % | 0.5 | Yes | After the signal, the bot waits for the price to turn back by this much before entering. Higher waits for more proof the move has turned, but enters at a worse price and can miss quick turns; lower (or 0) enters sooner, with more risk of catching a move that keeps going. |
| Stop-loss % | 3 | Yes | Closes the trade if the price moves this far against your entry. Tighter limits each loss but gets hit more often by normal swings; wider gives the trade more room but each losing trade costs more. If you use leverage, keep it well inside your liquidation distance. |
How it works (as shown in the app)
- This shorts (sells first, to buy back lower) when the price jumps above the upper Bollinger Band (a line marking an unusually high price compared with the last 20 hourly candles) while RSI is above 70 (RSI is a 0-100 gauge of recent buying; above 70 means heavy buying).
- It then waits for a small drop before shorting, and buys back when the price touches the middle band (the 20-candle average).
- It skips trades when ADX is above 25. ADX measures trend strength, so this avoids shorting into a strong one-way move.
- It tends to work when the market moves sideways in a range, bouncing between highs and lows.
- It struggles in strong uptrends and sudden squeezes: the price can keep rising after it shorts. The drop wait helps but does not prevent this.
- Profits per trade are usually small, so exchange fees take a noticeable share. Check your fee rate.
- Built for 1-hour candles (15 minutes to 4 hours also work). The backtest estimates touches that happen inside a candle, so live fills may differ.
- Shorting means you profit if the price falls and lose if it rises.
- Suggested leverage is at most 2x. On isolated margin, at 2x the exchange closes the position (liquidation) if the price moves about 49.7% against you, and you lose the margin you put into it. Keep your stop well inside that.
- For now this version runs in backtests only; paper and live futures trading are coming later.
Warnings¶
- "Backtest only for now: paper and live trading of shorts are coming later.": shown on short variants. They need perpetual or futures pairs.
- Variants on On candle touch act while the candle is still forming. The backtest estimates touches inside a candle, so live fills can differ, and a signal can repaint if price turns back before the close.
- Some variants suggest leverage. On isolated margin a liquidation loses the margin in that position; keep any stop well inside the liquidation distance (the Trade Builder warns you when it isn't).
- Once added, the strategy's conditions get the usual condition checks. Messages show under each condition on the entry / exit conditions screen; setting errors start with the indicator's short name (for example "MACD: Fast must be between 1 and 1000") and block saving, while the other warnings never block saving and repeat in the strategy's Entry or Exit section. See the indicator pages below for each one.
- "You already have this strategy with these settings (…). Change a setting to add another copy.": shown on the variant's page in the Strategy Library when you already added this variant with the same settings.
Good to know¶
- After you add it, the strategy keeps the library's trigger and an Auto main timeframe; you can change both in the builder. Nothing links it back to the library, except that the builder still shows the library's explanations in the info bubbles.
- Changing a setting before adding it also changes the saved name, so you can tell copies apart.
- Past results don't predict future ones. Try it in a backtest and on paper before using real money.
- Indicators used: ADX, BB, RSI.