# An RSI strategy in 5 minutes > Build an RSI oversold strategy for Bitcoin without code and backtest it on Binance candles since 2020: the rule, the exits, the dry run, what to read in the report. Guide · Janorium · Published 2026-11-05 Web page: https://janorium.com/guides/rsi-trading-strategy-in-5-minutes An RSI strategy buys when the Relative Strength Index says the price fell too far too fast, and sells once it has recovered. This recipe builds one for Bitcoin and tests it in five steps, without code: the wizard writes the rules, the dry run shows them on the chart, the backtest gives the numbers. ## The rule RSI(14) weighs the gains of the last 14 candles against their losses on a scale from 0 to 100. Below 30 is the textbook “oversold”: the price fell so fast that a bounce is the bet. The recipe turns that into three rules: - **Enter** on a 4-hour candle that closes with RSI(14) below 30, with half of the free capital. - **Exit** when RSI(14) is back above 50 — the bounce the idea bets on has happened. - **Or exit earlier** at +5% profit or at a −4% loss, whichever comes first. > **Idea: Buy oversold** > > Trades BTCUSDT on Binance spot, on 4-hour candles. > > Buys when the relative strength index RSI(14) is below 30, using 50% of the free capital. > > Closes the trade at +5% profit or at a loss of −4%, whichever comes first. It also closes when RSI(14) is above 50. > > Every entry and every exit pays 0.1% in fees plus 0.01% slippage. > > [Open in the wizard](https://janorium.com/strategies/new?idea=meanReversion&setting=0&src=guide:rsi-trading-strategy-in-5-minutes) *The recipe as the wizard builds it. The button opens the wizard with these answers.* ## Five steps 1. **Open the idea.** Press **Open in the wizard** on the card above. Without an account, sign in or create a free one first: once you are signed in, the wizard opens on the same answers. 2. **Check the answers.** The wizard asks which coin, which direction and market, which candles, how oversold and how much risk; the card picked BTC, long on spot, 4h, “RSI below 30” and Balanced. Change any of them, and the description under **What you’ll get** follows. 3. **Open it in the editor.** Press **Open in the editor**. Nothing is saved yet: the form holds the strategy, and the description above it says the same rules in words. 4. **Dry-run it.** In the **Dry-run** panel set the period and press **Run**. Seconds later you see the result and, on the last 500 candles of the period, where the entry fired — still nothing saved. Tick **Compare against random entries** to see whether the RSI rule beats a coin flip that trades as often, with the same exits. 5. **Save and run the backtest.** Save the strategy, then press **Run backtest** on its page. The report has the equity curve, every trade on the price chart, drawdowns and 60+ metrics. ## What to look at first - **The number of trades.** Under 30 trades is a small sample: a few lucky bounces make the win rate. Test more coins or a longer period before trusting it. - **Buy & Hold and Alpha.** The report puts what simply holding the coin made next to the strategy. A rule that buys dips sits out much of a bull market, so it can make money and still trail holding. - **Max drawdown.** The deepest fall of the account from a peak — the number that decides whether you would have stayed with the strategy. [Every metric, explained](https://janorium.com/guides/backtest-metrics-explained). What the platform’s own data says: the textbook version of this rule — buy when RSI climbs back above 30, sell when it crosses 70 — made money in 12 of 20 coin × timeframe runs on Binance spot in 2020–2026, but beat buy and hold in only 2 of them. [The RSI 30/70 study](https://janorium.com/articles/rsi-30-70-crypto-backtest) has every run. > **What this recipe did on BTC** > > A dry run of the card’s strategy on BTC 4-hour candles from 2020-01-01 to 2026-10-01 made more than 200 trades and lost almost half of the capital, while holding BTC multiplied it more than tenfold. Buying every oversold dip with a tight stop through a six-year bull market is the textbook rule at its worst. Repeat the dry run on the same dates to see it, then see what one more row does in [the trend-filter recipe](https://janorium.com/guides/trend-filter-trading-strategy). ## Four variations - **Deeper dips.** Answer “RSI below 25” or “below 20” in the wizard: fewer trades, each after a sharper fall. - **Only in an uptrend.** One more row keeps the strategy out while the price is below its long average — [the trend-filter recipe](https://janorium.com/guides/trend-filter-trading-strategy) shows how. - **The textbook cross.** In the editor, change the entry row’s operator from `<` to `CROSS_UP ↗`: the strategy then buys on the candle RSI climbs back above 30, not while it is still below. - **The short mirror.** On futures the same idea sells short when RSI(14) is above 70 and covers when it falls back below 50: > **Idea: Sell overbought** > > Trades BTCUSDT on Binance USDT-M futures with 1x leverage (isolated margin), on 4-hour candles. Funding payments are charged and paid as on the exchange. > > Opens a short when the relative strength index RSI(14) is above 70, using 35% of the free capital as margin. > > Closes the trade at +5% profit or at a loss of −4%, whichever comes first. It also closes when RSI(14) is below 50. > > Every entry and every exit pays 0.05% in fees plus 0.01% slippage. > > [Open in the wizard](https://janorium.com/strategies/new?idea=meanReversion&side=short&market=futures&setting=0&src=guide:rsi-trading-strategy-in-5-minutes) ## If the dry run shows no entries The stricter the level and the longer the candles, the rarer the signal: RSI(14) below 20 on daily candles may not happen at all in a short period. Lengthen the period, or take a milder level or shorter candles. If that does not help, [why a backtest has 0 trades](https://janorium.com/guides/why-backtest-shows-zero-trades) goes through the other causes. ## Frequently asked questions ### What are the best RSI settings for crypto? There is no best setting in general. RSI(14) with 30 and 70 is the textbook default and the place to start; a lower buy level trades less often, after deeper falls. Test any setting on several coins and periods before trusting it. ### Does an RSI strategy work on Bitcoin? It made money, but far less than holding. On Binance spot in 2020–2026 the textbook RSI 30/70 rule made +68.14% on daily BTC candles and +107.33% on 4-hour ones, while simply holding BTC made +1,078.75% and +1,059.22%. [The study](https://janorium.com/articles/rsi-30-70-crypto-backtest) has the runs. ### Do I need to know how to code? No. The wizard builds the strategy from your answers and the editor changes it with forms; underneath it is a JSON config, not code. Janorium is free, with no card.