RSI Strategy [PrimeAutomation]

⯁ OVERVIEW
The RSI Strategy [PrimeAutomation] is a momentum-driven trading system built around the behavior of the Relative Strength Index (RSI).
Instead of using traditional overbought/oversold zones, this strategy focuses on RSI breakouts with volatility-based trailing stops, adaptive profit-targets, and optional early-exit logic.
It is designed to capture strong continuation moves after momentum shifts while protecting trades using ATR-based dynamic risk management.

⯁ CONCEPTS

• RSI Breakout Momentum: Entries happen when RSI breaks above/below custom thresholds, signaling a shift in momentum rather than mean reversion.
  
• Volatility-Adjusted Risk: ATR defines both stop-loss and profit-target distances, scaling positions based on market volatility.
  
• Dynamic Trailing Stop: The strategy maintains an adaptive trailing level that tightens as price moves in the trade’s favor.
  
• Single-Position System: Only one trade at a time (no pyramiding), maximizing clarity and simplifying execution.
  

⯁ KEY FEATURES

• RSI Signal Engine
  • Long when RSI crosses above Upper threshold
  • Short when RSI crosses below Lower threshold
  These levels are configurable and optimized for trend-momentum detection.
  
  
• ATR-Based Stop-Loss
  A custom ATR multiplier defines the initial stop.
  • Long stop = price – ATR × multiplier
  
  • Short stop = price + ATR × multiplier
  
  Stops adjust continuously using a trailing model.
  
  
• ATR-Based Take Profit (Optional)
  Profit targets scale with volatility.
  • Long TP = entry + ATR × TP-multiplier
  
  • Short TP = entry – ATR × TP-multiplier
  
  Users can disable TP and rely solely on trailing stops.
  
  
• Real-Time Trailing Logic
  The stop updates bar-by-bar:
  • In a long trade → stop moves upward only
  • In a short trade → stop moves downward only
  This keeps the stop tight as trends develop.
  
  
• Early Exit Module (Optional)
  After X bars in a trade, opposite RSI signals trigger exit.
  This reduces holding time during weak follow-through phases.
  
  
• Full Visual Layer
  • RSI plotted with threshold fills
  • Entry/TP/Stop visual lines
  • Color-coded zones for clarity
  

⯁ HOW TO USE

• Look for RSI Breakouts:
  Focus on RSI crossing above the upper boundary (long) or below the lower boundary (short). These moments identify fresh momentum surges.
  
• Use ATR Levels to Manage Risk:
  Because stops and targets scale with volatility, the strategy adapts well to both quiet and explosive market phases.
  
• Monitor Trailing Stops for Trend Continuation:
  The trailing stop is the primary driver of exits—often outperforming fixed targets by catching larger runs.
  
  
• Use on Liquid Markets & Mid-Higher Timeframes:
  The system performs best where RSI and ATR signals are clean—crypto majors, FX, and indices.
  

⯁ CONCLUSION
The RSI Strategy [PrimeAutomation] is a modern RSI breakout system enhanced with volatility-adaptive risk management and flexible exit logic. It is designed for traders who prefer momentum confirmation over mean reversion, offering a disciplined framework with robust protections and dynamic trend-following capability.
Its blend of ATR-based stops, optional profit targets, and RSI-driven entries makes it a reliable strategy across a wide range of market conditions.