Fair Value Gap strategyvsRSI mean reversion strategy
Fair Value Gap strategy: Buy the imbalance bar of a fresh bullish FVG; short the mirror. Exit when the gap fills. · RSI mean reversion strategy: Buy when the market is overextended below the mean, ride it back to fair value.
Fair Value Gap strategy
Buy the imbalance bar of a fresh bullish FVG; short the mirror. Exit when the gap fills.
RSI mean reversion strategy
Buy when the market is overextended below the mean, ride it back to fair value.
Indicators
- Fair Value Gap (min gap 0.1%)
- RSI (period 14)
Timeframes
Bias
Long & short
Long only
Market fit
Range-bound
Range-bound
Entry rules
- Long on the bar a bullish FVG opens (bull_signal > 0).
- Short on a bearish FVG.
- 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
- Position closes the bar the gap is filled (rebalanced).
- 4% trailing stop, 3-bar cooldown.
- Close the position when RSI(14) recovers above 70.
- Hard stop-loss at 3% below entry; take-profit at 5%.
Expected behavior
Momentum-into-imbalance — fires on explosive bars, exits when the imbalance reverts. Equity curve is choppy with frequent small trades; works best when price respects imbalances and gives the bot a chance to ride the displacement.
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 Fair Value Gap strategy
- You expect range-bound — the thesis is "Buy the imbalance bar of a fresh bullish FVG; short the mirror. Exit when the gap fills."
- You want a long & short bot on 5m–4h candles with a balanced rule-set.
- You're comfortable monitoring 1 indicator (Fair Value Gap (min gap 0.1%)).
Buy the imbalance bar of a fresh bullish FVG; short the mirror. Exit when the gap fills.
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.
Fair Value Gap strategy
Buy the imbalance bar of a fresh bullish FVG; short the mirror. Exit when the gap fills.
RSI mean reversion strategy
Buy when the market is overextended below the mean, ride it back to fair value.
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