Maximize Your Trading Profits with This Simple and Effective RSI Strategy on Coinrule
Oversold RSI with Tight Stop-Loss
Hi there, and welcome to another Coinrule’s strategy of the week video. This week’s strategy is not going to use trading view signals. You will still be able to backtest the strategy on Coinrule using TradingView, but you won’t need to connect Coinrule to TradingView to run it.
An advantage of this is that you’ll be able to utilize that “any coin” option on Coinrule, meaning that you can run the strategy across all coins in the market and not just on one specific coin.
Another advantage of this is that you won’t need a paid TradingView subscription to run it on Coinrule. Similar to last week’s strategy, it uses the RSI or relative strength index to enter trades. However, this is the only technical indicator using the strategy. The indicator works by measuring the speed and change of price movements to determine whether a coin is oversold, indicating a good entry point or overbought, indicating a point of exit or an entry for a short position.
The RSI oscillates between zero and 100 and is traditionally considered overbought when over 70 and oversold goes below 30. As mentioned, to enter trades, the strategy uses the RSI to anticipate good points to enter positions to pick the right moment to buy. The strategy enters a trade when the RSI falls below 30, indicating that the coin is oversold and primed for a trend reversal.
The exit conditions are also very simple. The strategies take profit condition when the price appreciates 7% from the point of entry. The position also maintains a tight stop loss and closes the position if the price depreciates 1% from the entry price. The idea is to cut your losing trades fast and let your winners right.
Lastly, I will show you how to run the strategy on Coinrule and backtested on TradingView. First, I’m going to show you how to backtest the strategy on TradingView, you’ll need to find the strategy on our TradingView page.
Scroll down and you’ll find a description of the entry and exit conditions. This is what we’ve already been over, but it’s here for your reference if you want to look at it again. Scroll down and click Add to favorite indicators. I’ve already done it but just press this button here and come to the chart that you wish to run on.
Then, I’m going to test chainlink on a daily timeframe. This is important because, based on our backtesting data, the daily timeframe is the most profitable for this strategy. Feel free to experiment with other timeframes, but we recommend the daily. Come to your favourites under indicators here. Scroll down and find oversold RSI with tight stop loss by Coinrule, click it, and it’ll be added to the chart.
So you can see there were 13 Close trades. This strategy made $391 with $1,000 starting capital with 61.54% of trades being profitable. It’s important to know if this is just for one coin. And as I mentioned before, you can have the strategy run across all coins in the market using any coin operator.
So come to Coinrule and feel free to pause the video here and just copy the strategy. This is, this is the exact strategy that we’ve just been over. And the important specification is the date I’ve specified in a timeframe of one day here because as I said before, this was the most profitable based on our backtesting data.
So just copy the strategy. If you’re happy with it, click launch. And your strategy is now live. An important thing with this strategy is that I would recommend coming to your settings and the market cap settings and selecting. From my experience, do not buy coins with a market cap below 50 million. This will make the strategy even more profitable. But again, you can experiment with other options
To learn more watch it on our Youtube channel⬇️
Learn more about the strategies you can run automatically on Coinrule.
Trade safely
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DISCLAIMER
I am not an analyst or investment advisor. Everything that I provide here site is purely for guidance, informational and educational purposes. All information contained in my post should be independently verified and confirmed. I can’t be found accountable for any loss or damage whatsoever caused in reliance upon such information. Please be aware of the risks involved with trading cryptocurrencies.
