RSI-TrendReversal is an elementary strategy concept using the Relative Strenght Index indicator.
Strategy Logic: The point of market reversal can be detected when the RSI indicator’s value exceeds one of 2 preset levels – BUY LEVEL (to the oversold area) or SELL LEVEL (to the overbought area). When the RSI indicator line crosses the preset LEVEL on the way back from the oversold/overbought area, we can distinguish 2 signals:
Buy Signal: RSI indicator crosses the BUY LEVEL from below.
Sell Signal: RSI indicator crosses the SELL LEVEL from above.
RSI-TrendReversal Strategy Inputs:
- UniqueStrategyNumber – Unique strategy identifier (Magic Number), each running strategy should have a different UniqueStrategyNumber.
- RSIPeriod – Period settings for the RSI indicator (number of intervals from which is the RSI calculated)
- RSILevelBuy – Value of the BUY LEVEL (Usually a positive number between 20 and 40)
- RSILevelSell – Value of the SELL LEVEL (Usually a positive number between 60 and 80)
- OrderSizeLots – Fixed order Size in Lots
- StopLossPoints – Stop Loss distance from the entry price in Points (0 = No SL is set)
- TakeProfitPoints – Take Profit distance from the entry price in Points (0 = No TP is set)
- TrailingStopPoints – Trailing Stop distance in Points. When the Stop Loss distance from the current price is higher, the Stop Loss is adjusted closer to fit the preset level (0 = No TS is set)
Point – Minimal change in the asset quotation (usually the last digit)
Pip = 10 Points (regarding FX pairs)
Get the RSI-TrendReversal forex strategy:
Did you achieve the expected results in the backtest? Feel free to share your findings and opinions here in the discussion.
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