RSI Mean Reversion EA Template for MetaTrader 5
This free EA template uses the RSI indicator to identify oversold and overbought conditions, combined with an EMA trend filter to avoid false signals. Designed for the London session where liquidity is highest, the strategy buys when the market is oversold in an uptrend and sells when overbought in a downtrend. Build it in AlgoStudio without coding and export a production-ready MQL5 Expert Advisor.
What Is RSI Mean Reversion Trading?
The RSI (Relative Strength Index) measures the speed and magnitude of recent price changes on a scale from 0 to 100. When RSI drops below 30, it means the market has been selling aggressively and is likely oversold — a potential bounce is coming. When RSI rises above 70, the market is overbought and likely due for a pullback.
Mean reversion trading capitalizes on these extremes. Instead of following the trend like an MA crossover strategy, it bets that price will snap back toward its average after an extreme move. This approach tends to have a higher win rate (50–60%) than trend-following strategies, but each individual winning trade is typically smaller.
The critical ingredient is the trend filter. Without it, RSI will generate buy signals during strong downtrends (price keeps getting “more oversold”), leading to repeated losses. The 50 EMA filter ensures you only trade pullbacks within an established trend — buying oversold bounces in uptrends and selling overbought reversals in downtrends.
How This EA Template Works
The London session filter restricts trading to 08:00–17:00 GMT, when major pairs have the tightest spreads and highest liquidity. The combination of RSI extremes, trend confirmation, and session timing creates high-probability setups with clearly defined risk.
Unlike trend-following strategies that hold through extended moves, RSI mean reversion typically captures shorter pullback-to-mean moves. Trades are usually shorter in duration, which means more frequent entries and exits but with a higher win rate.
Default Parameters
These defaults are optimized for EURUSD H1. All parameters are exported as input variables for MT5 Strategy Tester optimization.
| Parameter | Value | Type |
|---|---|---|
| RSI Period | 14 | Indicator |
| Oversold Level | 30 | Entry |
| Overbought Level | 70 | Entry |
| Trend Filter | 50 EMA | Filter |
| Session | London (08:00–17:00 GMT) | Timing |
| Stop Loss | 1.5x ATR(14) | ATR-based |
| Take Profit | 2:1 R:R | Risk-reward |
| Max Trades/Day | 3 | Risk |
| 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 and create a new project. Name it “RSI Mean Reversion” and open the visual builder canvas.
2. Set up timing and indicators
Add a Trading Sessions block and select the London session. Drag an RSI block (period 14, oversold 30, overbought 70) and a Moving Average block (EMA, period 50) as the trend filter. Connect them to define your entry conditions.
3. Add trade execution and risk management
Add Place Buy and Place Sell blocks connected to your conditions. Add Stop Loss (1.5x ATR), Take Profit (2:1 R:R), position sizing (1% risk per trade), and Max Trades Per Day (3).
4. Export, backtest, and optimize
Export the MQL5 file and backtest on EURUSD H1 with 2+ years of data. Optimize RSI period (test 10, 14, 21), oversold/overbought levels (test 25/75, 30/70, 35/65), and EMA period (test 30, 50, 100). Demo trade for 1–3 months before going live.
RSI Mean Reversion vs MA Crossover: When to Use Which
| RSI Reversion | MA Crossover | |
|---|---|---|
| Best market | Range-bound / choppy | Trending / directional |
| Win rate | 50–60% | 35–45% |
| Trade duration | Shorter (hours) | Longer (hours to days) |
| Best for | Traders who prefer high win rates | Traders who prefer big winners |
Many traders run both strategies simultaneously on different pairs — RSI on range-bound pairs like EURGBP, and MA crossover on trending pairs like GBPUSD. AlgoStudio lets you build and export multiple EAs on the free plan.