RSI 30/70 Buy-the-Dip Strategy: 6 Backtests vs Buy and Hold
We tested the classic RSI 30 70 mean reversion rule on Bitcoin, Ethereum and Solana, on daily and four hour candles, with 0.10 percent fee and 0.05 percent slippage per side. It never beat buy and hold on total return or on return to drawdown in any of the six runs. The best run, Bitcoin four hour, made 9.3 percent against 925.0 percent for holding. The worst, Ethereum four hour, lost 95.1 percent. A parameter grid showed the one good looking setting was fragile, not robust.
Method: signal at candle close, trade at next candle open, long only, no leverage. Costs: fee 0.10% + slippage 0.05% per side. Data: Bitget spot candles.
This is a backtest on historical data, not financial advice.