Strategy templates

In ranging markets, RSI is a reliable contrarian signal. Assets that sell off hard tend to bounce before the primary trend resumes; RSI<30 catches that moment. Works best with a regime filter (ADX<25) to avoid buying into trending moves.

In a strong trend, RSI can sit below 30 for weeks while the asset keeps falling. Without a regime filter it bleeds capital catching every knife.

Two conditions must agree: price must have stretched far enough from the mean to hit the lower Bollinger band, AND RSI must confirm the move is overextended. Reduces false signals vs. RSI alone.

Narrow bands in low-volatility regimes let price close outside the band regularly without any real reversal. Works best when ATR is elevated.

EMA crosses catch sustained momentum. Works when crypto is in a clear multi-week trend (bull or bear). Easy to implement, easy to reason about.

Generates constant false signals in ranging markets. Most crypto time is ranging. Without filters, this strategy loses money on choppy chop before the one big trend pays for it.

MACD alone whipsaws in ranging markets. Adding ADX > 20 filters out the chop — you only take MACD signals when a trend is actually present.

ADX is a lagging indicator; by the time it confirms a trend, half the move may have already happened. Also misses mean-reversion edge entirely.

Supertrend is ATR-based so the stop distance adapts to volatility. One indicator handles both entry and trailing stop — unusually clean.

In low-volatility choppy periods, the trend flips constantly, racking up fees. Fee drag can bleed a whole year of gains in a bad quarter.

Three-timeframe confirmation (fast, medium, slow). When all three stack in order, short-, medium-, and long-term momentum agree. Fewer signals but higher quality.

The confirmation delay means you're always late to the trend. Often you enter right as the move exhausts and get shaken out by the first pullback.

The original Turtle Traders made millions on this. Breakouts are self-reinforcing — price taking out a recent high attracts more buyers. Works especially well during crypto bull cycles.

False breakouts are common. Many highs are tested, pierced briefly, and then fully rejected. Without an ATR-based stop, these fakeouts can be expensive.

Two uncorrelated trend indicators must both confirm. Cuts whipsaw signals dramatically. When both line up, the probability of sustained follow-through is materially higher.

Very selective — sometimes goes weeks without a trade. If you're watching the strategy expecting action, the patience required can trigger overriding it manually (the worst thing you can do).

In bull regimes, RSI rarely drops below 40 — so waiting for 30 means missing most dips. This template shifts RSI thresholds up in bull regimes (buy at 45) and down in bear regimes (buy at 25), using a 200 EMA as the regime gate.

Regime detection itself lags. A regime switch often happens AT a high-RSI reading, so the strategy keeps trading the old regime until it notices. Requires care with the regime classifier.