RSI & Volatility: An Automated Trading Strategy

This paper presents a quantitative trading strategy based on the Relative Strength Index (RSI) combined with volatility-adjusted risk management techniques. The model is designed to automate entry and exit decisions while dynamically adapting stop-loss and take-profit levels to changing market conditions.

The study includes a full technical overview of the methodology, Python-based implementation, and a one-month intraday (15-minute timeframe) backtest across multiple international equities, including AstraZeneca, Barclays, Coca-Cola, Pfizer, Sony, Stellantis, Tesla and POSCO.

The results highlight how performance varies depending on volatility regimes and asset characteristics, emphasizing the critical role of adaptive risk management in systematic trading.