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Bullish RSI Crossing Scalper
This strategy uses the RSI together with candlestick confirmation to scalp trades during uncertain times.
“Buy when the RSI is oversold and sell when the RSI is overbought.” This is the basic strategy you learn when using the RSI indicator. Yet, there are times when this straightforward rule is not efficient.
Oscillator indicators such as the RSI struggle to provide valuable signals during periods of uncertainty. If the market is trending lower, the RSI can stay in oversold conditions for a while, forcing the trader to get stuck in a position in loss.
The purpose of this strategy is to seize the moment when the RSI crosses the threshold of 30, improving the chances of catching a short-term price rebound. In this way, traders can exploit the usual RSI signals and maximize the probability of entering a winning trade even during uncertain market conditions.
Firstly, the bot scans the market looking for coins with an RSi lower than 30. Then, the strategy requires waiting for 5 minutes (a fixed period), and it places the buy order if the RSI is greater than 30.
Additionally, the price increase by 0.1% (or a small, fixed percentage) provides further confirmation that the price is trending higher.
This strategy comes with a trailing stop loss and a conservative take profit.
Since the rule has particular use in undetermined market conditions, the bot closes the trade when the RSI is greater than 50. That is intended to take profit more frequently compared to higher RSI levels in uncertain times.
Alternatively, the strategy also includes a dynamic stop loss which closes the trade when the price decreases by 0.6% within a single candle. A relatively large down candlestick may signal a trend reversal, so it’s savvy to exit the trade as quickly as possible to trim losses.
How it Works
This trading system tends to open and close trades very quickly, often in a matter of minutes.
How to Build the Bullish RSI Crossing Scalper with Coinrule
The strategy can also add value to your portfolio in uncertain times when the market does not trade with a clear bullish trend.