Fair Value Gap strategyvsRSI dip with trend filter strategy
Fair Value Gap strategy: Buy the imbalance bar of a fresh bullish FVG; short the mirror. Exit when the gap fills. · RSI dip with trend filter strategy: Buy oversold RSI dips, but only when price is still above the 50 EMA.
Fair Value Gap strategy
Buy the imbalance bar of a fresh bullish FVG; short the mirror. Exit when the gap fills.
RSI dip with trend filter strategy
Buy oversold RSI dips, but only when price is still above the 50 EMA.
Indicators
- Fair Value Gap (min gap 0.1%)
- RSI (period 14)
- EMA (period 50)
Timeframes
Bias
Long & short
Long only
Market fit
Range-bound
Filtered, selective
Entry rules
- Long on the bar a bullish FVG opens (bull_signal > 0).
- Short on a bearish FVG.
- RSI(14) below 35 AND
- Close is above the 50-bar EMA — the dip is with the trend, not against it.
Exit rules
- Position closes the bar the gap is filled (rebalanced).
- 4% trailing stop, 3-bar cooldown.
- RSI(14) above 65, OR close drops below EMA(50).
- Hard 2.5% stop; 5% take-profit.
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.
Cleaner equity curve than vanilla RSI mean reversion because the EMA filter cuts the worst counter-trend trades. Fewer setups, but each one comes with a stacked deck.
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 dip with trend filter strategy
- You expect filtered, selective — the thesis is "Buy oversold RSI dips, but only when price is still above the 50 EMA."
- You want a long-only bot on 15m–4h candles with a balanced rule-set.
- You're comfortable monitoring 2 indicators (RSI (period 14), EMA (period 50)).
Buy oversold RSI dips, but only when price is still above the 50 EMA.
Fair Value Gap strategy
Buy the imbalance bar of a fresh bullish FVG; short the mirror. Exit when the gap fills.
RSI dip with trend filter strategy
Buy oversold RSI dips, but only when price is still above the 50 EMA.
Related comparisons
Other pairings that involve one of these strategies.
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