How It Trades
- Compute the 14-bar RSI of the close.
- Buy when the RSI drops below 30: selling has been so one-sided the market is called oversold.
- Hold until the RSI rises above 70 (buying has become just as one-sided (overbought)) then sell into that strength.
Example Strategy
Pine Script
Paste it into TradingView’s Pine Editor to run these rules on any chart.
//@version=6
// RSI Oversold Overbought — sort.finance. Fills at the signal bar's close, 0.02% fee a side,
// whole account per trade, as the backtest. History and indicator warm-up
// differ from the site's, so expect close to the same trades, not identical.
strategy("RSI Oversold Overbought", overlay=false,
initial_capital=100, default_qty_type=strategy.percent_of_equity,
default_qty_value=100, commission_type=strategy.commission.percent,
commission_value=0.02, process_orders_on_close=true, pyramiding=0)
// The bar the current position opened on, and the bar the last one closed on.
var int entryBar = na
var int exitBar = -1
// ── Signals ──────────────────────────────────────────────────────────────
rsi = ta.rsi(close, 14)
enterNow = rsi[1] >= 30 and rsi < 30
exitNow = rsi[1] <= 70 and rsi > 70
// ── Orders ───────────────────────────────────────────────────────────────
// Open on the first bar the entry holds while flat; close on the first
// later bar the exit holds; never reopen on the bar a position closed.
inTrade = strategy.position_size != 0
if inTrade and bar_index > entryBar and exitNow
strategy.close("Long")
exitBar := bar_index
else if not inTrade and bar_index > exitBar and enterNow
strategy.entry("Long", strategy.long)
entryBar := bar_index
// ── Drawing ──────────────────────────────────────────────────────────────
plot(rsi, "RSI 14", color=#4d8dff)
hline(30, "Oversold 30", color=color.new(#8a92a0, 40), linestyle=hline.style_dashed)
hline(70, "Overbought 70", color=color.new(#8a92a0, 40), linestyle=hline.style_dashed)