RSI 5min Cross Strategy

A short-term mean-reversion strategy that capitalizes on RSI oscillations in volatile markets.

Core Logic:

Entry Signal:

Triggers LONG position when 14-period RSI crosses above 35 on 5-minute charts

Indicates emerging momentum from oversold territory

Exit Signal:

Closes position when 14-period RSI crosses below 65

Captures profit before potential overbought reversal

Key Features:

Designed for high-liquidity markets (FX, crypto, large-cap stocks)

Optimized for ranging/sideways markets

Default 0.1% transaction cost included

Non-repainting signals for reliable backtesting

Rationale:

Uses wider RSI thresholds (35/65 vs standard 30/70) to avoid false signals

Exploits short-term price mean-reversion in 5-minute timeframes

Automated exit prevents emotional decision-making

Ideal For:

Day traders seeking frequent opportunities (6-12 trades/day)

Markets with clear oscillation patterns (e.g., indices, major currency pairs)

Risk Management:
⚠️ Requires strict stop-loss (not included in base script)
⚠️ Performs best when combined with:

Volume confirmation

Support/resistance alignment

Volatility filters (ATR/BB Width)

Strengths ➔ Quick turnaround trades, simple ruleset
Limitations ➔ Choppy markets cause whipsaws, needs trend confirmation