Three extremes, one strike. Buys capitulation lows where RSI, ATR-distance from the MA and a volume spike all line up — then exits on your chosen recovery trigger.
Triple Strike Reversal is a confluence mean-reversion strategy: it only fires when three independent extremes hit the same bar, so signals are deliberately rare and high-conviction.
1. Momentum extreme — RSI ≤ the oversold threshold. 2. Mean-distance extreme — price sits far below its moving average. Distance is measured in ATR multiples by default (volatility-adaptive) or as a fixed percentage. 3. Volume extreme — volume exceeds its rolling average by a multiplier (panic-flush confirmation).
A capitulation event arms an entry zone for a few bars (signal persistence); the strategy goes long on the first flat bar in that zone. The exit is preset-driven rather than a mirror capitulation:
It is long-only with no pyramiding. Because all three conditions must align, expect very few trades per asset — test across multiple assets or a long timeframe for statistical meaning. A bearish/short mode is planned for the leverage engine (a later phase) and is intentionally not part of this version.
| Name | Default | Range | Description |
|---|---|---|---|
| RSI Length | 14 | 2–100 | Lookback for the RSI. |
| RSI Oversold | 30 | 5–49 | RSI at/below this = oversold extreme (entry condition). |
| MA Type | 0 | 0–2 | Moving average type: SMA, EMA or WMA. EMA/WMA react faster. |
| MA Length | 50 | 2–500 | Lookback for the moving average the price distance is measured against. |
| Deviation Mode | 0 | 0–1 | ATR multiple (volatility-adaptive) or fixed percentage from the MA. |
| Deviation Value | 1.5 | 0.1–50 | How far below the MA to qualify — ATR multiples (e.g. 1.5) or percent (e.g. 5). |
| ATR Length | 14 | 2–100 | Lookback for the ATR (only used in ATR deviation mode). |
| Volume Multiplier | 2 | 1–10 | Volume must exceed its rolling average by this factor (spike filter). |
| Volume Average Length | 20 | 2–200 | Lookback for the rolling volume average. |
| Exit Mode | 1 | 0–2 | Recovery trigger: fast (RSI≥50), balanced (MA cross), patient (RSI≥70 or MA cross). |
| Signal Persistence | 3 | 1–20 | Bars an armed capitulation zone stays open for an entry. |
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// Entry (long-only)
bullishThreshold = deviationMode == 'atr' ? ma - atr*deviationValue : ma*(1 - deviationValue/100)
if rsi <= rsiOversold and close < bullishThreshold and volume >= volAvg*volMultiplier:
armEntryZone(signalPersistence)
if position.is_flat and inArmedZone:
BUY
// Exit (preset)
if position.is_long:
fast: if rsi >= 50: SELL
balanced: if prevClose <= prevMA and close > ma: SELL
patient: if rsi >= 70 or (prevClose <= prevMA and close > ma): SELLThree extreme conditions must align on the same bar, which is rare by design. Test across multiple assets or extend the timeframe for statistical meaning — and consider it as an overlay on a base strategy rather than standalone.
ATR (default) adapts the entry distance to each asset's recent volatility, so the same settings work across calm and wild markets. Percent is simpler and predictable but needs re-tuning per asset.
Balanced (MA cross) is the default and rides the recovery back to the mean. Fast (RSI≥50) books the bounce quickly with more, smaller trades. Patient (RSI≥70 or MA cross) holds for a stronger move at the risk of giving some back.
No, long-only in this version. A bearish/short mode is planned for the leverage engine in a later phase — without a short engine, bearish signals cannot be backtested, so they are deliberately omitted here.
After all the trend strategies — meet the panic strategy. Buys panic bottoms where RSI, MA distance and volume all hit extremes at once.
The textbook RSI strategy — buy when oversold (RSI < 30), sell when overbought (RSI > 70). Best in sideways markets.
Larry Connors' classic equity edge — buy short-term oversold dips inside an uptrend, exit fast on the bounce.
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