RSI Reversal EA Template for MetaTrader 5
The RSI Reversal is a classic mean reversion strategy that buys when the market is oversold and sells when it is overbought. This free EA template uses RSI(14) with standard 70/30 levels, ATR-based risk management, and an optional 200 EMA trend filter. Best for ranging markets on EURUSD, GBPUSD, and AUDNZD across M15 to H1 timeframes. Build it in AlgoStudio without coding, customize the parameters, and export a production-ready MQL5 Expert Advisor in minutes.
What Is an RSI Reversal Strategy?
The Relative Strength Index (RSI) measures the speed and magnitude of recent price changes on a scale from 0 to 100. When the RSI drops below the oversold level (default 30), it signals that sellers may be exhausted and a bounce is likely. When it rises above the overbought level (default 70), it signals that buyers may be exhausted and a pullback is probable.
This is a mean reversion approach — it assumes that prices tend to return to their average after reaching extremes. Unlike trend-following strategies that ride momentum, RSI Reversal trades against short-term extremes, profiting when price snaps back toward the mean. The trade-off is that the strategy can lose in strong trends where the RSI stays at extreme levels for extended periods.
Mean reversion with RSI has been used by traders for decades and works particularly well in range-bound forex pairs where price oscillates between support and resistance levels. Adding a trend filter (like a 200 EMA) ensures you only trade reversals in the direction of the larger trend, significantly improving the strategy's robustness.
How This EA Template Works
The ATR-based stop loss adapts to current volatility — wider stops in volatile conditions, tighter stops in calm markets. A 1.2x ATR multiplier is tighter than trend-following strategies because mean reversion trades aim for quicker, smaller moves back to the mean rather than extended trend rides.
The optional 200 EMA trend filter is highly recommended. Without it, the strategy will take counter-trend trades in strong trends, leading to painful drawdowns. With the filter enabled, you only buy in uptrends and only sell in downtrends, ensuring you trade reversals that align with the dominant market direction.
Default Parameters
These defaults work well on EURUSD, GBPUSD, and AUDNZD on M15 to H1. All parameters are exported as input variables so you can optimize them in the MT5 Strategy Tester.
| Parameter | Value | Type |
|---|---|---|
| RSI Period | 14 | Indicator |
| Overbought Level | 70 | Threshold |
| Oversold Level | 30 | Threshold |
| Stop Loss | 1.2x ATR(14) | ATR-based |
| Take Profit | 1.5:1 R:R | Risk-reward |
| Trend Filter (EMA) | 200 (optional) | Filter |
| Position Sizing | 1% risk per trade | Risk |
How to Build This EA Without Coding
1. Create a new project in AlgoStudio
Sign up for free (no credit card required) and click “New Project”. Name your project “RSI Reversal Strategy” and open the visual builder canvas.
2. Add the RSI indicator block
Drag an RSI indicator block onto the canvas and set the period to 14, overbought level to 70, and oversold level to 30. Connect it to Buy and Sell condition nodes, then add Stop Loss and Take Profit nodes. These are the standard settings used by most professional traders.
3. Configure risk management and optional filters
Set the stop loss to 1.2x ATR(14), take profit to 1.5:1 risk-reward, and position sizing to 1% risk per trade. Enable the trend filter with a 200 EMA to avoid counter-trend entries. Optionally add a session filter to trade only during London or New York hours for the most liquid conditions.
4. Export, backtest, and optimize
Click Export to generate a .mq5 file. Load it into MetaTrader 5 and backtest on EURUSD M30 or H1 with at least 2 years of historical data. Use the MT5 Strategy Tester optimizer to test RSI periods from 7 to 21, and overbought/oversold levels from 65/35 to 80/20. Demo trade for 1-3 months before going live.
Optimization Tips
Focus on range-bound pairs
Mean reversion works best on pairs that oscillate within ranges rather than trending strongly. EURUSD, GBPUSD, and AUDNZD are solid choices. Avoid strongly trending pairs or test during known ranging periods. The strategy naturally underperforms during strong directional moves.
Always use the trend filter
Trading RSI reversals without a trend filter is the most common mistake. A 200 EMA filter prevents buying in downtrends and selling in uptrends. This single addition typically cuts drawdown by 30-50% while only slightly reducing the number of trades.
Watch for overfitting on RSI levels
If your backtested RSI levels are very specific (like 67.3 / 32.7), you've almost certainly overfitted. Stick to round numbers: 70/30, 75/25, or 80/20. A robust RSI Reversal strategy should work across a range of similar settings, not just one precise combination. If small parameter changes cause large performance swings, the strategy is fragile.