Optimized BTC Mean Reversion (RSI 20/65)

📈 Optimized BTC Mean Reversion (RSI 20/65)

Optimized BTC Mean Reversion (RSI 20/65) is a rule-based trading strategy designed to capture mean-reversion moves in strong market structures, primarily optimized for Bitcoin, but adaptable to other liquid cryptocurrencies.

The strategy combines RSI extremes, Stochastic momentum, and EMA trend filtering to identify high-probability reversal zones while maintaining strict risk management.

🔍 Strategy Logic

This system focuses on entering trades when price temporarily deviates from equilibrium, while still respecting the broader trend.

✅ Long Conditions

RSI below 20 (oversold)

Stochastic below 25

Price trading above the 200 EMA (or within a controlled deviation)

Designed to buy sharp pullbacks in bullish conditions

❌ Short Conditions

RSI above 65 (overbought)

Stochastic above 75

Price trading below the 200 EMA

Designed to sell relief rallies in bearish conditions

🛡 Risk Management

Fixed Stop Loss: 4%

Fixed Take Profit: 6%

Risk/Reward: 1 : 1.5

No pyramiding (single position at a time)

Full equity position sizing (adjustable)

All exits are predefined at entry, ensuring consistency and emotional discipline.

📊 Indicators Used

200 EMA – Trend direction filter

RSI (14) – Mean-reversion trigger (20 / 65 levels)

Stochastic Oscillator – Momentum confirmation

👁 Visual Features

EMA plotted directly on chart

Real-time Stop Loss, Take Profit, and Entry Price lines

Clear long/short entry markers

Works on all timeframes (optimized for intraday and swing trading)

🔔 Alerts

Long entry alerts

Short entry alerts
(Perfect for automation or discretionary execution)

⚠️ Disclaimer

This strategy is intended for educational and research purposes only. Past performance does not guarantee future results. Always test on a demo account and adjust risk parameters to your own trading plan.