A simple RSI strategy


Cryptocurrency markets are highly volatile, a currency can dump 10% very quickly and recover 5% within the next minutes
Let's see how we can profit from that

In this tutorial, we're going to see how to create a trading strategy that profits from oversold conditions, to buy the lowest possible and quickly sell on the uptrend
This tutorial is here to make you understand something: you no longer need to know anything about code to be successful in automated trading


1) Designing the strategy


We're going to use the RSI indicator on 30 min intervals, with Heikin Ashi candles.
RSI (relative strengh index) is an indicator that allows us to notice overbought or oversold assets.
You can learn more about it here

rsi strategy
Our buy and sell orders, visualized


Here are our conditions:
  • Buy: when the 14 periods long RSI crosses 30 on the uptrend (when we're leaving the "oversold" zone)
  • Sell: when the 14 periods long RSI crosses 60 on the downtrend (when we're leaving the "overbought" zone)
You may notice that we're not using the 70 line that is often gave as RSI signal. We're using a little bit less (60) so that the bot sells earlier.
That's all, the simpler strategies are often the best ones


2) Implementing the strategy


Here's the easy part, we're going to go in bots and click on "new bot"

rsi strategy
After entering a name and specifying that we're trading on XRP, we're good to go!



To check a RSI cross with the y=30 line, we just need to check that: [RSI 1 period ago] < 30 < [actual RSI]


Let's do that: click on the left value and configure a 30 min, 14 periods RSI with Heikin Ashi candles.
On the "intervals back in time" field, select 1: we want the past candle's RSI.

rsi strategy
Only 3 more left!


Press enter, you'll see this:

rsi strategy


Repeating the process

We'll need to repeat this process 3 times, and select the values in the middle of them.
We're not going to detail that here as it is quite straightforward.



In the end

If you configured your bot the right way througout the tutorial, you should see that:

Buy:
rsi strategy


Sell:
rsi strategy

3) Running our strategy


After saving your strategy, just click on the "enable" button and enjoy the results 😉
We encourage you to enable telegram notifications to be alerted whenever your bot takes position.
In order to be sure that our strategy is profitable, we encourage you to test it for a while on the sandbox exchange.
As a reminder, Sandbox trading on kaktana is 100% free, forever.



Conclusion

In cryptocurrency, there's no "get rich quick scheme": we're not going to promise you daily 10% returns on a market that does -5%.
Rather, we're helping you to benefit from automated trading whatever your level is. Automated trading strategies can be very profitable, as long as you use the right tools.



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