Multi-period trend confluence strategyvsRSI mean reversion strategy
Multi-period trend confluence strategy: Fast and slow trend regimes must agree before opening — long or short. · RSI mean reversion strategy: Buy when the market is overextended below the mean, ride it back to fair value.
Multi-period trend confluence strategy
Fast and slow trend regimes must agree before opening — long or short.
RSI mean reversion strategy
Buy when the market is overextended below the mean, ride it back to fair value.
Indicators
- Trend regime (period 20, slope 3)
- Trend regime (period 100, slope 8)
- RSI (period 14)
Timeframes
Bias
Long & short
Long only
Market fit
Strong directional trends
Range-bound
Entry rules
- Long when BOTH trend20 = +1 AND trend100 = +1.
- Short when BOTH trend20 = -1 AND trend100 = -1.
- 8-bar cooldown 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
- Exit immediately when the slower trend100 regime flips to 0 (chop).
- 7% trailing stop on the runner.
- Close the position when RSI(14) recovers above 70.
- Hard stop-loss at 3% below entry; take-profit at 5%.
Expected behavior
Trend follower with patience. Long flat periods when the two timeframes disagree, then steady runs when the slow regime turns and the fast one confirms. Drawdowns are deeper because exits wait for chop, not a clean flip.
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 Multi-period trend confluence strategy
- You expect strong directional trends — the thesis is "Fast and slow trend regimes must agree before opening — long or short."
- You want a long & short bot on 4h–1d candles with a balanced rule-set.
- You're comfortable monitoring 2 indicators (Trend regime (period 20, slope 3), Trend regime (period 100, slope 8)).
Fast and slow trend regimes must agree before opening — long or short.
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.
Multi-period trend confluence strategy
Fast and slow trend regimes must agree before opening — long or short.
RSI mean reversion strategy
Buy when the market is overextended below the mean, ride it back to fair value.
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