Premium/Discount Zones strategyvsRSI dip with trend filter strategy
Premium/Discount Zones strategy: Buy the discount extreme, fade the premium extreme, exit at equilibrium. · RSI dip with trend filter strategy: Buy oversold RSI dips, but only when price is still above the 50 EMA.
Premium/Discount Zones strategy
Buy the discount extreme, fade the premium extreme, exit at equilibrium.
RSI dip with trend filter strategy
Buy oversold RSI dips, but only when price is still above the 50 EMA.
Indicators
- Premium/Discount Zones (lookback 200)
- RSI (period 14)
- EMA (period 50)
Timeframes
Bias
Long & short
Long only
Market fit
Range-bound
Filtered, selective
Entry rules
- Long when price is inside the discount zone (current_zone = +1).
- Short when price is inside the premium zone (current_zone = -1).
- 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 when price returns to equilibrium.
- 4% trailing stop, 5-bar cooldown.
- RSI(14) above 65, OR close drops below EMA(50).
- Hard 2.5% stop; 5% take-profit.
Expected behavior
Range trader — fits balanced markets where extremes get bought / faded back to mid. Stacks losses in strong trends that camp at one extreme for many bars.
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 Premium/Discount Zones strategy
- You expect range-bound — the thesis is "Buy the discount extreme, fade the premium extreme, exit at equilibrium."
- You want a long & short bot on 1h–1d candles with a balanced rule-set.
- You're comfortable monitoring 1 indicator (Premium/Discount Zones (lookback 200)).
Buy the discount extreme, fade the premium extreme, exit at equilibrium.
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.
Premium/Discount Zones strategy
Buy the discount extreme, fade the premium extreme, exit at equilibrium.
RSI dip with trend filter strategy
Buy oversold RSI dips, but only when price is still above the 50 EMA.
Related comparisons
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