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RSI TRADING STRATEGIES EA MT4/MT5 Settings/Inputs Guide

9 June 2024, 09:05

Biswarup Banerjee

2 017

MT4 Version: Relative Strength Index(RSI) Strategy Multicurrency EA MT4

MT5 Version: Relative Strength Index(RSI) Strategy Multicurrency EA MT5

Complete User Documentation — MT4 & MT5

1. OVERVIEW

The Relative Strength Index (RSI) Strategy Multicurrency EA automates trading across multiple currency pairs from a single chart, using RSI-based entry and exit strategies. It calculates RSI on user-defined timeframes and applies configurable overbought/oversold thresholds, divergence detection, and trend filters to generate signals. This solves the problem of manually scanning dozens of pairs for RSI setups, letting you run a systematic, multi-pair strategy without staring at screens all day.

Who Should Use It: Active forex traders who rely on RSI for timing entries and exits, and want to deploy a consistent, automated strategy across a basket of pairs without coding.

Main Benefit: Automate your RSI-based trading across multiple currency pairs simultaneously, with flexible entry/exit logic, divergence detection, and built-in risk controls — all from one chart.

2. INPUT PARAMETERS & SETTINGS

This product shares a common set of general input settings with all Multi-Currency Scanner Dashboard products in this series. The following sections are covered in the common guide: General Settings (pairs list, dashboard colors, panel size), Timeframe Signal Settings (individual TF scan per symbol), Timeframe Confluence Settings (multi-TF confluence scan), and Alert Settings (popup, push notification, email). For full details refer to the Common Multi-Currency Scanner Dashboard Settings Guide. The sections below cover only the product-specific inputs unique to this product.

General Settings

These settings control how the EA handles stop-loss/take-profit display, group-level risk limits, swap inclusion in profit calculations, and backtest history recording.

Setting Name	Type	Default Value	Description	Example
Chart lines for virtual SL/TP (never drawn during optimization)	bool	false	When enabled, draws horizontal lines on the chart showing where your hidden stop-loss and take-profit levels sit. Useful for visual confirmation during live trading, but lines are never drawn during optimization runs to avoid clutter.	true — enable during live trading to see your virtual SL/TP levels on the chart.
Group Stoploss Amount	double	0	Sets a maximum total loss in account currency for all trades opened by this EA. Once the combined floating loss hits this value, the EA stops opening new trades. Helps cap drawdown across the whole portfolio.	100 — stop new trades if total loss across all pairs exceeds $100.
Include Swap charges in Profit	bool	true	When true, swap (overnight interest) is factored into the profit calculation used by breakeven and trailing stop logic. Set to false if you want those features to ignore swap, which can be useful for short-term strategies.	false — for a scalping strategy where swap is negligible and you want cleaner profit tracking.
Enable history for backtests or optimization	bool	false	When enabled, the EA records trade history to a file during backtests or optimization runs. Useful for post-run analysis, but can slow down optimization. Leave disabled unless you need detailed trade logs.	true — enable when running a full optimization to export trade data for external analysis.

Atr Trailingstop Settings

These settings configure an ATR-based trailing stop that adjusts stop-loss levels dynamically based on market volatility.

Setting Name	Type	Default Value	Description	Example
Use ATR Trailing Stop	bool	false	Master switch for the ATR trailing stop feature. When enabled, the EA will automatically adjust stop-loss levels based on ATR values, making the trail responsive to changing volatility. Disable if you prefer a fixed pip-based trailing stop.	true — enable for volatile pairs like GBP/JPY where a fixed pip trail may be too tight or too loose.
ATR Timeframe	ENUM	PERIOD_CURRENT	Selects the timeframe used to calculate the ATR value for the trailing stop. Using a higher timeframe (e.g., H4) gives a smoother, less reactive trail, while a lower timeframe (e.g., M15) makes it more responsive to recent volatility.	PERIOD_H1 — use the 1-hour ATR for a balanced trail that filters out noise.
ATR Period	int	14	Number of bars used to calculate the ATR. A shorter period (e.g., 7) makes the trail react quickly to recent volatility spikes, while a longer period (e.g., 21) smooths out the ATR for a more stable trail.	7 — use for a faster-reacting trail on lower timeframes like M15.
Activation (ATR multiplier)	double	2.0	The profit (in ATR units) required before the trailing stop activates. A value of 2.0 means the trail starts once price moves 2 ATRs in your favor. Higher values delay activation, giving the trade more room to breathe.	3.0 — use for a wider activation threshold on trending pairs to avoid premature trailing.
Trail distance (ATR multiplier)	double	1.0	The fixed distance (in ATR units) that the stop-loss trails behind the current price. A value of 1.0 keeps the stop 1 ATR away. Smaller values tighten the trail, larger values give more breathing room.	1.5 — use a wider trail distance for volatile pairs to avoid being stopped out by noise.
Trail increment (ATR multiplier)	double	0.5	The minimum price movement (in ATR units) required before the stop-loss is adjusted. A value of 0.5 means the stop moves every 0.5 ATRs of favorable price movement. Lower values make the trail more granular.	0.3 — use for a finer trail on lower timeframes where price moves in smaller increments.

Grid Settings

This setting controls whether the EA attempts to recover losses from all grid trades by closing them as a group when total profit is positive.

Setting Name	Type	Default Value	Description	Example
Recover profit from all grid trades	bool	false	When enabled, the EA will close all open trades for a symbol as a group once the combined profit across those trades turns positive. Useful for grid or martingale strategies where individual trades may be in loss but the basket is profitable.	true — enable if using a grid strategy to close the entire grid when overall profit is achieved.

Safeguard Settings

These settings provide safety limits for backtesting and live trading, including maximum drawdown, minimum profit thresholds, and inactivity checks.

Setting Name	Type	Default Value	Description	Example
Max Loss from initial balance [0: disable]	double	0.0	Sets a maximum allowable loss as a percentage of the initial account balance. Once hit, the EA stops all trading. A value of 20 means the EA will halt if losses exceed 20% of starting equity. Set to 0 to disable.	15 — stop trading if drawdown exceeds 15% of the starting balance.
Minimum Profit Percent [backtesting only] [0: disable]	double	0	During backtesting, this sets a minimum total profit percentage required for the run to be considered valid. Useful for filtering out optimization results that barely break even. Has no effect in live trading.	5 — only accept backtest results with at least 5% total profit.
Minimum Trades [backtesting only] [0: disable]	double	0	During backtesting, this sets a minimum number of trades required for the run to be considered valid. Helps filter out optimization results with too few trades to be statistically meaningful. Set to 0 to disable.	30 — only accept backtest results with at least 30 trades.
Max inactive days [backtesting only] [0: disable]	int	0	During backtesting, this sets the maximum number of consecutive days without a trade before the run is considered invalid. Useful for detecting strategies that go dormant for long periods. Set to 0 to disable.	10 — reject backtest runs where no trade occurs for 10+ consecutive days.

Rsi Settings

These settings define the core RSI calculation parameters, including timeframe, period, applied price, calculation mode, threshold levels, and the entry/exit strategies that determine when trades are opened and closed.

Setting Name

Type

Default Value

Description

Example

Rsi Timeframe

ENUM

PERIOD_CURRENT

Selects the timeframe on which the RSI is calculated. Using a higher timeframe (e.g., H4) gives a broader market perspective, while a lower timeframe (e.g., M15) makes the EA more responsive to short-term moves.

PERIOD_H1 — use the 1-hour RSI for a swing trading approach.

Rsi Period

int

Number of periods used to calculate the RSI. A shorter period (e.g., 5) makes the RSI more sensitive to price changes, generating more signals. A longer period (e.g., 21) smooths the indicator, reducing false signals.

5 — use for a faster RSI on lower timeframes like M5 for scalping.

Rsi Applied Price

ENUM

PRICE_CLOSE

Determines which price (close, open, high, low, etc.) is used for RSI calculation. Close is standard, but using Open can give earlier signals, while High/Low can be useful for breakout strategies.

PRICE_OPEN — use opening prices for a cleaner signal that ignores intra-bar noise.

Calculation Mode (Useful for backtesting)

ENUM

AUTO

Controls how the upper and lower RSI levels are determined. In MANUAL mode, you set both levels explicitly. In AUTO mode, the EA calculates the lower level based on the upper level, which can simplify backtesting across different market conditions.

MANUAL — use when you want full control over both threshold levels for a specific strategy.

Rsi Upper Level

double

The RSI value above which the market is considered overbought. A lower value (e.g., 60) generates more overbought signals, while a higher value (e.g., 80) is more conservative. Adjust based on the pair's typical RSI range.

3. HOW IT WORKS

Core Calculation & Logic

At its heart, this EA calculates the classic Relative Strength Index (RSI) for each symbol you've listed, using the period, applied price, and timeframe you set in the inputs. The RSI is a momentum oscillator that measures the speed and magnitude of recent price changes — it ranges from 0 to 100. The EA then compares each symbol's current RSI value against your defined upper and lower thresholds (default 60 and 40) to detect overbought or oversold conditions. But it doesn't stop there: depending on which entry strategy you pick, it watches for specific crossovers, level breaks, or even divergences between price and RSI to generate buy and sell signals. The EA loops through every symbol on every tick, so you get near-instant detection of opportunities across all pairs from a single chart.

What sets this EA apart from a simple indicator alert is its ability to combine RSI signals with your chosen risk management rules — stop loss, take profit, trailing stops, and position sizing — and then execute trades automatically. You're not just getting a signal; you're getting a complete trading decision that respects your account risk parameters. The mathematical basis is the standard Wilder's RSI formula, but the EA layers on top of it a multi-symbol scanner and an execution engine, making it a full-fledged trading system rather than just a signal generator.

Entry Strategies Explained

Each of the seven entry strategies defines a different rule set for when to open a buy or sell position. You choose one via the Rsi Entry Strategy input. Here's what each one does in practice:

ENTRY_STRATEGY1 — Classic Oversold Bounce / Overbought Rejection

BUY Signal: When RSI crosses below the lower level (e.g., 40) and then crosses back above it. This catches the moment the pair exits oversold territory.

SELL Signal: When RSI crosses above the upper level (e.g., 60) and then crosses back below it. This catches the moment it exits overbought territory.

Best For: Range-bound markets where price oscillates between support and resistance. Works well on higher timeframes like H1 or H4.

ENTRY_STRATEGY2 — Trend Reversal Confirmation

BUY Signal: When RSI crosses above the lower level from below. This means the pair was oversold and is now recovering — a potential trend reversal to the upside.

SELL Signal: When RSI crosses below the upper level from above. This means the pair was overbought and is now weakening — a potential reversal to the downside.

Best For: Markets that have been in a strong trend and are showing signs of exhaustion. Use with a trend filter (like a moving average) to avoid false signals in choppy conditions.

ENTRY_STRATEGY3 — Momentum Continuation (Overbought/Oversold Breakout)

BUY Signal: When RSI crosses above the upper level. This indicates strong upward momentum — you're buying into strength.

SELL Signal: When RSI crosses below the lower level. This indicates strong downward momentum — you're selling into weakness.

Best For: Trending markets where you want to ride the momentum. Be careful: this can lead to buying at the top or selling at the bottom in range-bound markets.

ENTRY_STRATEGY4 — Extreme Overbought/Oversold Fade

BUY Signal: When RSI is below the lower level. You're buying while the pair is still oversold, anticipating a bounce.

SELL Signal: When RSI is above the upper level. You're selling while the pair is still overbought, anticipating a pullback.

Best For: Strongly mean-reverting markets. This is a contrarian approach — it works best when you have a clear support/resistance level to confirm the reversal.

ENTRY_STRATEGY5 — Oversold/Overbought Continuation

BUY Signal: When RSI is above the upper level. You're buying in overbought territory, expecting the trend to continue.

SELL Signal: When RSI is below the lower level. You're selling in oversold territory, expecting the downtrend to persist.

Best For: Strong trending markets where the RSI stays in overbought/oversold zones for extended periods. This is a trend-following strategy.

ENTRY_STRATEGY6 — Zero-Line Crossover (Momentum Shift)

BUY Signal: When RSI crosses above the 50 level (the "zero line" or midline). This signals a shift from bearish to bullish momentum.

SELL Signal: When RSI crosses below the 50 level. This signals a shift from bullish to bearish momentum.

Best For: Identifying the start of a new trend. Works well on lower timeframes like M15 or M30 for scalping, or on H1 for swing trading.

ENTRY_STRATEGY7 — Divergence Trading

BUY Signal: Bullish divergence: price makes a lower low, but RSI makes a higher low. This suggests selling pressure is weakening.

SELL Signal: Bearish divergence: price makes a higher high, but RSI makes a lower high. This suggests buying pressure is weakening.

Best For: Catching major trend reversals. This is the most advanced strategy and requires the divergence settings to be tuned properly. Works best on H4 or daily charts.

Step-by-Step Workflow

Step 1: Attach the EA to a chart. Open any currency pair chart (e.g., EURUSD on H1). Drag the EA onto it. The EA will scan all symbols you list in the SYMBOLS parameter — it doesn't need to be attached to each pair individually.

Step 2: Configure your symbol list. In the SYMBOLS input, enter the pairs you want to trade, separated by commas. For example: EURUSD,GBPUSD,USDJPY,AUDUSD . The EA will scan each one on every tick.

Step 3: Set your RSI parameters. Choose the Rsi Timeframe (e.g., PERIOD_H1), Rsi Period (default 14), Rsi Applied Price (default PRICE_CLOSE), and your Rsi Upper Level and Rsi Lower Level (default 60 and 40).

Step 4: Pick your entry strategy. Select one of the seven Rsi Entry Strategy options. If you choose strategy 7 (divergence), also configure the divergence lookback and distance settings.

Step 5: Set your risk management. Choose your Lot Size (e.g., 0.01 for micro lots), then configure SLTP_MODE (Pips, Amount, Percent, etc.) and the corresponding stop loss and take profit values. If you want hidden SL/TP, keep HIDDEN_SL_TP set to true.

Step 6: Enable AutoTrading. Make sure AutoTrading is enabled in MetaTrader (the green triangle in the toolbar). The EA will begin scanning and trading immediately based on your settings.

Step 7: Monitor the dashboard. The EA draws a dashboard on the chart showing real-time RSI values, signals, and open positions for each symbol. Use it to verify the EA is working as expected.

4. RISK MANAGEMENT FEATURES

This EA gives you several ways to control risk — from simple fixed stop losses to more advanced group-level protections. Here's what each feature does:

Feature	Description
Stop Loss & Take Profit Modes	You can set SL/TP in pips, as a fixed amount in account currency, as a percentage of account balance, or as a group-level amount/percentage that applies across all open positions. This flexibility lets you match your risk style — scalpers might use pips, while swing traders might prefer percentage-based stops.
Hidden SL/TP	When enabled, the EA manages stop loss and take profit internally without sending them to the broker. This keeps your trading intentions private — useful if you're worried about broker stop-hunting. The EA will close the position manually when the price hits your hidden level.
Group Stop Loss / Take Profit	This feature lets you set a maximum loss or target profit across all positions combined. For example, if you set GROUP_STOPLOSS_AMOUNT to 100, the EA will close all open positions if the total floating loss reaches $100. This is a powerful way to cap your daily or per-session risk.
Risk-Reward Ratio	If you set a non-zero value for RISK_REWARD_RATIO, the EA will automatically calculate the take profit based on your stop loss distance. For example, a ratio of 2 means the TP is twice the distance of the SL. This ensures every trade has a predefined risk-reward profile.
Position Sizing via Lot Size	You set a fixed lot size for all trades. This is simple and predictable — you know exactly how much each trade risks. For more advanced position sizing (e.g., based on account balance), you'd need to modify the EA or use a separate risk management tool.

5. IMPORTANT NOTES & WARNINGS

Known Limitations

Issue	Explanation
Single-Chart Dependency	The EA must be attached to a chart to run. If you close the chart, the EA stops. It also relies on the chart's timeframe for some internal calculations — attaching it to a different timeframe than your intended scan timeframe can cause confusion.
No Partial Close or Trailing Stop	This version does not include trailing stop loss or partial position closing. Once a trade is open, it runs until SL or TP is hit, or until you manually intervene. If you need trailing stops, you'll need to add that logic or use a separate EA.
Divergence Detection Can Be Noisy	Strategy 7 (divergence) relies on your lookback and distance settings. If these are too tight, you'll get few signals; if too loose, you'll get many false ones. Backtest thoroughly to find the sweet spot for your pair and timeframe.
No News Filter or Time Filter	The EA does not pause trading around high-impact news events or during specific hours. If you want to avoid trading during volatile news releases, you'll need to manually disable AutoTrading or add a time filter to the code.
Hidden SL/TP Not Visible in Backtest	When SHOW_HIDDEN_SL_TP_LINES is false (the default during optimization), you won't see the virtual SL/TP lines on the chart. This is by design to speed up backtests, but it can make it hard to verify your levels visually.

Settings Beginners Should NOT Change

Setting	Why to Leave Default
Calculation Mode	The default is MANUAL, which uses fixed RSI levels. Switching to AUTO changes how levels are calculated dynamically — this can produce unexpected signals if you haven't tested it thoroughly. Stick with MANUAL until you understand the difference.
Divergence Lookback Bars	The default of 50 bars is a good balance for most timeframes. Changing it to a very low number (e.g., 10) will produce many false divergence signals. Leave it at 50 until you've backtested other values.
Minimum/Maximum Bars Distance for Divergence	The defaults (20 and 200) prevent the EA from detecting divergence that's too close together or too far apart. Changing these without understanding the impact can either flood you with signals or starve you of them.
Group Stop Loss / Take Profit	These are set to 0 by default, meaning they're disabled. If you accidentally set a group SL to a small value (e.g., $10), the EA could close all your positions on a minor drawdown. Only enable these after you've calculated your maximum acceptable loss.
Hidden SL/TP	The default is true, which is fine for most traders. If you set it to false, the EA sends real SL/TP orders to the broker. This can be problematic if your broker doesn't support certain order types or if you're trading on a FIFO account.