EMA breakout with ATR sizing strategyvsRSI mean reversion strategy
EMA breakout with ATR sizing strategy: Cross above a 20-bar EMA, trail the position with ATR-aware stop bands. · RSI mean reversion strategy: Buy when the market is overextended below the mean, ride it back to fair value.
EMA breakout with ATR sizing strategy
Cross above a 20-bar EMA, trail the position with ATR-aware stop bands.
RSI mean reversion strategy
Buy when the market is overextended below the mean, ride it back to fair value.
Indicators
- EMA (period 20)
- ATR (period 14)
- RSI (period 14)
Timeframes
Bias
Long only
Long only
Market fit
Volatility shifts
Range-bound
Entry rules
- Enter long when close crosses above EMA(20).
- Cooldown of 4 bars after exit.
- Enter long when RSI(14) prints below 30 — the textbook oversold threshold.
- Only one position at a time; the cooldown blocks immediate re-entry after an exit.
Exit rules
- Cross back below EMA(20) closes the trade.
- Hard 5% stop; trailing 4% stop locks in winners as ATR shifts.
- Close the position when RSI(14) recovers above 70.
- Hard stop-loss at 3% below entry; take-profit at 5%.
Expected behavior
Long stretches of flat or modest growth followed by occasional sharp jumps when a sustained trend follows the EMA-cross signal. Quiet markets generate few setups by design.
Choppy zig-zag equity curve with frequent small wins and the occasional outlier loss when a sharp downtrend leaves RSI pinned in the oversold zone. Fits range-bound chop; struggles in strong directional regimes.
Complexity
Which one is right for you?
Derived from the bias, timeframe and indicator profile of each strategy — not a back-test forecast.
When to pick EMA breakout with ATR sizing strategy
- You expect volatility shifts — the thesis is "Cross above a 20-bar EMA, trail the position with ATR-aware stop bands."
- You want a long-only bot on 1h–1d candles with a balanced rule-set.
- You're comfortable monitoring 2 indicators (EMA (period 20), ATR (period 14)).
Cross above a 20-bar EMA, trail the position with ATR-aware stop bands.
When to pick RSI mean reversion strategy
- You expect range-bound — the thesis is "Buy when the market is overextended below the mean, ride it back to fair value."
- You want a long-only bot on 15m–4h candles with a balanced rule-set.
- You're comfortable monitoring 1 indicator (RSI (period 14)).
Buy when the market is overextended below the mean, ride it back to fair value.
EMA breakout with ATR sizing strategy
Cross above a 20-bar EMA, trail the position with ATR-aware stop bands.
RSI mean reversion strategy
Buy when the market is overextended below the mean, ride it back to fair value.
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