ATR Trend + RSI Pullback Strategy [Profit-Focused]

This strategy is designed to catch high-probability pullbacks during strong trends using a combination of ATR-based volatility filters, RSI exhaustion levels, and a trend-following entry model.

Strategy Logic

Rather than relying on lagging crossovers, this model waits for RSI to dip into oversold zones (below 40) while price remains above a long-term EMA (default: 200). This setup captures pullbacks in strong uptrends, allowing traders to enter early in a move while controlling risk dynamically.

To avoid entries during low-volatility conditions or sideways price action, it applies a minimum ATR filter. The ATR also defines both the stop-loss and take-profit levels, allowing the model to adapt to changing market conditions.

Exit logic includes:

• A take-profit at 3× the ATR distance
  
• A stop-loss at 1.5× the ATR distance
  
• An optional early exit if RSI crosses above 70, signaling overbought conditions
  

Technical Details

• Trend Filter: 200 EMA – must be rising and price must be above it
  
• Entry Signal: RSI dips below 40 during an uptrend
  
• Volatility Filter: ATR must be above a user-defined minimum threshold
  
• Stop-Loss: 1.5× ATR below entry price
  
• Take-Profit: 3.0× ATR above entry price
  
• Exit on Overbought: RSI > 70 (optional early exit)
  

Backtest Settings

• Initial Capital: $10,000
  
• Position Sizing: 5% of equity per trade
  
• Slippage: 1 tick
  
• Commission: 0.075% per trade
  
• Trade Direction: Long only
  
• Timeframes Tested: 15m, 1H, and 30m on trending assets like BTCUSD, NAS100, ETHUSD
  

This model is tuned for positive P&L across trending environments and volatile markets.

Educational Use Only
This strategy is for educational purposes only and should not be considered financial advice. Past performance does not guarantee future results. Always validate performance on multiple markets and timeframes before using it in live trading.