RSI Eraser
RSI Eraser is an Expert Advisor that trades mean reversion signals based on the RSI indicator reaching extreme overbought or oversold levels. It enters counter-trend positions when RSI exits extreme zones, expecting price to revert to the mean. The EA includes configurable RSI periods, extreme thresholds, and basic risk management parameters.
Open the interactive view (equity curve, symbol switch)Key facts
Backtest results (H1, about 1 year)
| Symbol | P&L | Annual | Max DD | Trades | Win rate | Sharpe | Recovery | Losing streak | Per trade | Status |
|---|---|---|---|---|---|---|---|---|---|---|
| EURUSD | -3.61% | -3.15% | 6.80% | 145 | 39.60% | -0.76 | -0.53 | 9 | −$2.74 | Reliable |
| GBPUSD | -3.37% | -2.94% | 7.64% | 145 | 44.40% | -0.53 | -0.44 | 7 | −$2.50 | Reliable |
| USDJPY | +3.79% | +3.29% | 3.63% | 144 | 61.50% | 0.78 | 1.04 | 5 | +$2.54 | Reliable |
| XAUUSD | -28.40% | -24.12% | 75.61% | 150 | 50.70% | 0.27 | -0.38 | 6 | −$18.93 | Reliable |
Profitable on 1 of 4 markets with reliable results.
Converted from MQL5 to Python and run with the same rules for every EA. Positions use MT5 lot sizes (100,000 units per FX lot, 100 oz per gold lot) with 1:100 leverage, one order at a time, and a stop-out below 10% of the starting balance. Sharpe is computed from the equity curve. Results marked as unreliable are shown for completeness only.
Against the other Mean Reversion EAs with a reliable result on the same market: EURUSD: better than 37% of 30 · GBPUSD: better than 31% of 32 · USDJPY: better than 69% of 32 · XAUUSD: better than 35% of 31
Month by month
| Market | Months with a gain | Best month | Worst month |
|---|---|---|---|
| EURUSD | 62% | +1.83% 2026-04 | -2.35% 2026-09 |
| GBPUSD | 46% | +1.87% 2026-01 | -2.48% 2026-09 |
| USDJPY | 69% | +1.54% 2025-11 | -1.25% 2026-07 |
| XAUUSD | 54% | +105.55% 2026-08 | -41.49% 2026-06 |
From the backtest equity curve, sampled about every two days; only reliable results.
Blow-up risk: No blow-up pattern found
- Has no stop loss or trailing stop
On its own this is not a typical blow-up pattern, and the account was not stopped out in our backtests. That is not a guarantee: any EA can lose money.
High: stopped out in our backtest, or martingale/grid sizing without a stop loss. Elevated: martingale or grid sizing with a stop loss, or several positions at once without a stop loss. What the label means and what we found →
Strategy analysis
The core strategy concept of RSI Eraser is mean reversion, using the RSI indicator to identify extreme market conditions. Entry conditions are: buy when RSI crosses upward from the oversold zone (below the configured lower threshold), and sell when RSI crosses downward from the overbought zone (above the configured upper threshold), essentially entering counter-trend positions at market extremes. Exit conditions rely on configurable take-profit and stop-loss levels, and may also include closing logic when RSI returns to neutral territory. Position sizing supports fixed lot trading, with some implementations potentially offering dynamic lot calculation based on account balance. Money management depends on stop-loss settings and per-trade risk control, though the rigor of implementation varies with parameter configuration. The strategy performs well in ranging markets but faces the risk of consecutive counter-trend losses during strong trending conditions.
Strengths
- Strategy logic is clean and straightforward, based on the classic RSI overbought/oversold principle, making it easy to understand and verify
- Mean reversion approach has high win rate and stable profit potential in ranging markets
- Highly configurable parameters allow traders to flexibly adjust RSI thresholds and periods for different instruments and market conditions
Weaknesses
- Pure counter-trend strategy generates frequent false signals during strong trending markets, leading to consecutive losses
- Lacks trend filter mechanism, unable to distinguish between ranging and trending markets, prone to repeated counter-trend entries during trends
- Default stop-loss of 0 means no stop-loss may be set, creating extreme risk of unlimited loss on a single trade
Possible improvements
- Add a trend filter (e.g., moving average direction or ADX indicator) to enable counter-trend signals only in ranging markets
- Mandate stop-loss settings and add ATR-based dynamic stop-loss and take-profit calculation to adapt to different volatility environments
Risk assessment
Overall risk: High risk
- Default stop-loss of 0 means a single trade without stop-loss can cause catastrophic losses
- Lacks trend filter and multi-confirmation mechanism, making counter-trend trading extremely risky during strong trends
- No new bar check mechanism may cause repeated position opening on the same signal
Evaluation scores
Parameters
| Parameter | Default | Description |
|---|---|---|
RSI_Period | 14 | RSI indicator period |
RSI_Overbought | 70 | RSI overbought threshold |
RSI_Oversold | 30 | RSI oversold threshold |
LotSize | 0.1 | Base lot size per leg |
StopLoss | 0 | Stop loss in points, 0 means no stop loss |
TakeProfit | 0 | Fixed take profit points (20 pts) |
MagicNumber | 12345 | EA unique identifier number |
Similar Mean Reversion EAs
Backtests are historical simulations and do not guarantee future results. Not financial advice.