STRATEGY CHECK
Bollinger Bands + RSI mean reversion
Mean reversion · The standard countertrend pairing of Bollinger Bands (20, 2) with oversold RSI(14)
Backtest result
BTCUSDT spot daily · 2020–2025
This strategy+70.5%Buy & hold+1,114.5%
- Trades
- 16
- Win rate
- 68.8%
- Max drawdown
- −26.9%
- Profit factor
- 1.84
- Annualized return
- +9.3%
- Time in market
- 8.4%
What the result shows
- Buying and holding over the same period returned +1,114.5%. This strategy returned +70.5%, less than that.
- It held a position 8.4% of the time and sat in cash for the rest.
- Only 16 trades in 6 years. With a sample this small, a few trades decide the result.
- Along the way equity fell as much as −26.9% from its previous peak.
Rules
- Entry
- Close below the lower band and RSI(14) < 30
- Exit
- Close back above the middle band (20-day SMA) · 2× ATR stop
- What changed when written as rules
- Common default settings, no squeeze filter
- Test conditions
- BTCUSDT spot daily · 2020–2025 · 0.10% fee per side · 0.05% slippage · entry at the next open after a signal on a closed candle
This is a calculation of the rules on historical prices. It is not a recommendation to buy or sell any asset and does not promise returns. A different symbol, timeframe or period gives a different result. Results claimed by the original sources have not been verified by this service.
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