Mommy

# Perpetual Futures RSI Mean-Reversion Strategy ## 1. Market & Timeframe * Trade selected liquid perpetual-futures pairs only. * Use the **1-hour timeframe** for all RSI signals. * Use **RSI(14)**. * Evaluate RSI signals using **completed 1-hour candles**, not intrabar fluctuations. * Maximum **10 new trades per 24-hour period**. ## 2. Long Entry A long setup occurs when: 1. RSI(14) on a completed 1-hour candle first reaches **40 or below**. 2. After that oversold reading, wait for RSI to recover and cross back above **40** on a completed 1-hour candle. The cross back above 40 is confirmed when the previous completed candle's RSI was at or below 40 and the current completed candle's RSI is above 40. 3. Enter long after that confirmed cross back above 40. Do not enter merely because RSI touches or crosses 40 in the initial downward direction. Do not require multiple candles of reversal confirmation beyond the completed-candle cross back above 40. Example: **45 → 39 → 37 → 38 → 41** Enter long when RSI crosses back above 40, at 41. ## 3. Short Entry A short setup occurs when: 1. RSI(14) on a completed 1-hour candle first reaches **60 or above**. 2. After that overbought reading, wait for RSI to decline and cross back below **60** on a completed 1-hour candle. The cross back below 60 is confirmed when the previous completed candle's RSI was at or above 60 and the current completed candle's RSI is below 60. 3. Enter short after that confirmed cross back below 60. Do not enter merely because RSI touches or crosses 60 in the initial upward direction. Do not require multiple candles of reversal confirmation beyond the completed-candle cross back below 60. Example: **55 → 61 → 64 → 62 → 59** Enter short when RSI crosses back below 60, at 59. ## 4. Long Exit Close an open long position when **either** of the following occurs, whichever happens first: * RSI reaches **60 or above** on the completed 1-hour candle. * The position reaches approximately **+10% ROE/return on margin**. The 10% target refers to the return on the capital allocated to the position, **not a 10% move in the underlying asset price**. ## 5. Short Exit Close an open short position when **either** of the following occurs, whichever happens first: * RSI reaches **40 or below** on the completed 1-hour candle. * The position reaches approximately **+10% ROE/return on margin**. ## 6. Stop Loss For each new position, define and place its stop-loss at entry using the most recent valid confirmed 1-hour swing structure available in the 1-hour history: * A confirmed swing low is a candle whose low is lower than the lows of the two immediately preceding candles and the two immediately following candles. For a long, set the stop one 1-hour ATR(14) below the most recent valid confirmed swing low. * A confirmed swing high is a candle whose high is higher than the highs of the two immediately preceding candles and the two immediately following candles. For a short, set the stop one 1-hour ATR(14) above the most recent valid confirmed swing high. * Use completed 1-hour candles for swing confirmation and the latest completed 1-hour ATR(14) value when calculating the stop. A swing is not confirmed until its two following candles are complete. * The stop must close the entire position when triggered. * Do not move the stop farther away from entry or widen it after opening the position. Do not substitute an arbitrary fixed-percentage stop or invent a stop level. * If no valid confirmed swing structure is available, or the required ATR or price data is missing or incomplete, do not open the trade. Also skip the entry if the calculated stop is not on the protective side of entry: below entry for a long or above entry for a short. These stop rules govern new entries and do not, by themselves, alter or close positions that were already open when this rule is adopted. ## 7. Trade Universe Do not trade every available symbol. Trade only a predefined list of **selected, sufficiently liquid perpetual-futures pairs**. The list should prioritize liquidity and avoid low-liquidity or highly erratic markets. ## 8. Trade Frequency Maximum: **10 new trades per rolling 24-hour period.** The purpose of this limit is to prevent excessive overtrading and repeated exposure to weak signals. The trade limit should not be used as a substitute for good signal quality. A trade should only be opened when all entry conditions are satisfied. ## 9. Core Principle This is a **1-hour RSI mean-reversion strategy**. The basic concept is: **Oversold → wait for threshold reclaim → Long → exit toward 60** and **Overbought → wait for threshold reclaim → Short → exit toward 40** Prioritize the completed-candle threshold-reclaim entry rules above rather than trading the initial RSI threshold touch or cross.