I have been back testing manually using RSI crossover, as signal for BUY and SELL. It seems to be producing good results. But doing it manually can be a little tedious and prone to some human errors.

Can an EA help test this more accurately?

Another problem, I don't know how to write an EA!

Whats the cross over. Brief discription. I can put this togeather in no time.

Dave

Pinggarcia
Post your entry and exit rules, i will write an ea for u.

I use RSI-5 and RSI-14
1H time frame

Here's the entry point, for BUY:

When the value of RSI-14 go lower than 40, then on its way up, wait for RSI-5 to cross it. The value that we need is at the CLOSE of each candle only.

To lessen the false signals, the value of RSI-5 and RSI-15, when it crossed at the CLOSE of the candlestick must have a difference of 5 points or above.


To close the BUY position, wait for RSI-14 to reach 60 level or above. Then wait for the RSI-5 to cross it on its way down. Wait for the candlestick to finish and see if indeed RSI-5 will have crossed the RSI-14, whatever the difference of their value is, close the trade.


Here's the entry point, for SELL:

When the RSI-14 go higher than 60, then on its way down, wait for RSI-5 to cross it. The value that we need is at the CLOSE of each candle only. To lessen the false signals, the value of RSI-5 and RSI-14, when it crossed at the CLOSE of the candlestick must have a difference of 5 points or above.

To close the SELL position, wait for RSI-14 to go down to 40 level or below. Then wait for the RSI-5 to cross it on its way up. Wait for the candlestick to finish and see if indeed RSI-5 will have crossed the RSI-14, whatever the difference of their value is, close the trade.

This seems to be working fine with EURUSD. I wanted to back test it with other pairs too. Is that possible?

I dont know how to back test. And somehow, checking my manual testing, BUY seems to be doing better. Anyway, can you please see if the automatic back test for the month of April yielded the same results?

April 2007 manual test results:
BUY 4/4 (00H) - 1.3335 (+34)
CLOSE 4/5 (02H) - 1.3369

BUY 4/9 (07h) - 1.3365 (+42)
4/10 (00h) - 1.3378 (+29)
CLOSE 4/10 (07H) - 1.3407

BUY 4/23 (14H) - 1.3565 (+61)
4/24 (05H) - 1.3566 (+60)
CLOSE 4/25 (00H) - 1.3626

BUY 4/26 (17H) - 1.3604 (+19)
4/27 (00H) - 1.3597 (+26)
4/27 (07H) - 1.3598 (+25)
CLOSE 4/27 (15H) - 1.3623

A total of +296 pips.

The reason why there are multiple open trades, is because RSI-14 did not reach 60 level, and the market ranges up and down, and then up again.

Please feel free to test, and put your comments.



Some ideas:
1. As it is, there's no SL set, which is very dangerous, thus I was thinking of setting the SL at 30pips

2. Maybe the RSI threshold value can also be changed 30 (from 40), and to 70 (from 60), Hopefully, the EA can make it "adjustable" for purposes of testing and see the optimization level.

3. Currently, it is set at 60M timeframe, I am also interested on how it will fare with shorter time frames.

Hi Pinggarcia,

Try to use RVI, it should produce better signals

Cheers,

What settings on RVI please?

How do I "interpret" the crossovers?

Any updates, guys?

BTW, I was thinking of enhancing the rules for EXITING the open trade.

The STOPLOSS limit remains at 20 pips.


To close the thread, for BUY position:
Initially, the TARGET is set at 20 pips.

Then if the RSI 14 reached the 60 point level, "erase" the 20-pip target and replace by trailing profit by 10 pips (or by 15 pips if that's the minimum allowed),


For SELL position:
Initially, the TARGET is set at 20 pips.

Then if the RSI 14 reached the 40 point level, "erase" the 20-pip target and replace by trailing profit by 10 pips (or by 15 pips if that's the minimum allowed),


Is that possible?

Thats a little more complex rsi cross system then I antisipated. One of the more experianced guys will have to do this.
sry

Dave

Hi Dave,

You mean the RVI is complicated or the RSI?

I don't know the RVI too. Can you do the RSI crossover?


Thanks,
Ping

I've done a visual back testing with the strategy pinggarcia presented (RSI cross), and it seems impressive, it catches most of the pips move.

I'm not personally fan of lines crossings, but this one is different. The hardest part of this kind of strategy is the anticipating of the cross. It will be great if someone can build an EA for this.