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RSI Momentum (Cardwell regime)

What it does: Uses RSI as a momentum signal: buys strength while the daily trend is healthy. RSI is a 0-100 gauge of recent buying versus selling. Instead of buying low readings, this buys when 4-hour RSI rises through 55 while daily RSI is above 50, and sells when 4-hour RSI drops below 45, or at the stop-loss.

Style: Momentum · Difficulty: Intermediate · Risk: medium · Ready: 2 of 2 variants

When people use it: It tends to work in bull trends, where RSI tends to stay between 40 and 80.

Where it struggles: It struggles when RSI hovers around 50 in a sideways market.

Markets it was written for: BTC, ETH, majors. Timeframes: 4h with 1d regime.

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

Uses RSI as a momentum signal: buys strength while the daily trend is healthy.

Labels: Momentum, Long, Spot, Intermediate, Medium

  • Direction: Buy (long) · Market: spot
  • Trigger: On candle close · Main timeframe: Auto (4h)

Entry

  • IF RSI(14) crosses above 55 (4h) and RSI(14) > 50 (1d)
  • UNLESS ADX(14) < 20 (4h)

Exit: Indicator-Based Exit

  • IF RSI(14) crosses below 45 (4h)
  • Loss controls: Stop-loss % 6%

Settings

Setting Default Editable What changing it does
Entry RSI 55 Yes The 4-hour RSI level that triggers a buy. Higher waits for stronger momentum (fewer, later entries); lower enters sooner.
Exit RSI 45 Yes Sells when 4-hour RSI drops below this. Higher exits sooner and protects gains; lower stays in through deeper dips.

How it works (as shown in the app)

  • RSI is a 0-100 gauge of recent buying versus selling. Instead of buying low readings, this buys when 4-hour RSI rises through 55 while daily RSI is above 50, and sells when 4-hour RSI drops below 45, or at the stop-loss.
  • It skips trades when ADX (trend strength) is below 20.
  • It tends to work in bull trends, where RSI tends to stay between 40 and 80.
  • It struggles when RSI hovers around 50 in a sideways market.
  • Built for 4-hour candles with a daily check.

Short (perp)

Uses RSI as a momentum signal: shorts weakness while the daily trend is weak.

Labels: Momentum, Short, Futures, Medium, Backtest Only

  • Direction: Sell (short) · Market: swap
  • Trigger: On candle close · Main timeframe: Auto (4h)

Entry

  • IF RSI(14) crosses below 45 (4h) and RSI(14) < 50 (1d)
  • UNLESS ADX(14) < 20 (4h)

Exit: Indicator-Based Exit

  • IF RSI(14) crosses above 55 (4h)
  • Loss controls: Stop-loss % 6%

Settings

Setting Default Editable What changing it does
Entry RSI 45 Yes The 4-hour RSI level that triggers a short. Lower waits for stronger downward momentum (fewer entries); higher enters sooner.
Exit RSI 55 Yes Closes the short when 4-hour RSI rises above this. Lower exits sooner; higher stays in through bigger bounces.

How it works (as shown in the app)

  • RSI is a 0-100 gauge of recent buying versus selling. This shorts when 4-hour RSI falls through 45 while daily RSI is below 50, and buys back when 4-hour RSI rises above 55, or at the stop-loss.
  • It skips trades when ADX (trend strength) is below 20.
  • It tends to work in bear trends, where RSI tends to stay between 20 and 60.
  • It struggles when RSI hovers around 50 in a sideways market.
  • Built for 4-hour candles with a daily check.
  • Shorting means you profit if the price falls and lose if it rises.
  • Suggested leverage is at most 3x. On isolated margin, at 3x the exchange closes the position (liquidation) if the price moves about 33% 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.
  • 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, RSI.