Coil Breaker | RSI Range Compression — Strategy by blitz_locked
By blitz_locked
Performance Metrics
- Author: blitz_locked
- Symbol: NASDAQ:AMD
- Timeframe: 1 day
- Win Rate: 19.0%
- Profit Factor: 1.858
Description
Most RSI strategies fire off static 30/70 thresholds. Coil Breaker does something different: it treats RSI itself as a volatility asset and watches for its own trading range to contract to a multi-month low — a "coil" — before trading the breakout when it releases.How it works:Measures RSI's high-minus-low range over the last N bars and ranks it against its own history using a percentile scoreWhen that range compresses into the bottom percentile (default 20%), RSI is flagged as "coiled" — oscillating tightly around 50, momentum dormantA dynamic Bollinger-style channel is plotted directly around RSI so you can visually watch the coil tighten before it firesOnce a squeeze has been active recently, a breakout above/below the established coil band (not the still-forming one) triggers an entryDirection is set by an EMA slope filter — the coil tells you something's coming, the EMA tells you which wayOptional ADX filter keeps you out of truly dead, directionless chopATR-based stop, fixed R-multiple target, and equity-percent risk sizing so every trade risks a constant dollar amountImportant — read before trading:This is a breakout/momentum system, not a mean-reversion one, and it behaves accordingly: expect a low win rate (often 30–40%) alongside a high average win/loss ratio. Most coil breakouts fail or chop — you're paying for early entry with more false signals. The edge comes from asymmetric payoff (2R+ winners vs. 1R losers), not from being right often. Judge this strategy on profit factor and expectancy, not win rate. If a 60%+ win rate is what you're looking for, this isn't that system.Tips:Backtest coilLen, pctLen, and the percentile threshold across your specific instrument/timeframe — coil dynamics vary a lot between assetsWatch the equity curve shape, not just the total return — make sure gains aren't carried by one or two outlier tradesWorks best on instruments/timeframes with genuine volatility cycles (expansion/contraction), not ultra-choppy or illiquid marketsPair with higher-timeframe context if you want to filter out counter-trend coil breaks