The RSI Engine MT5 EA Version: 2.1 - expert for MetaTrader 5

Key Features

• Multiple Entry Strategies: Choose between classic overbought/oversold reversals or advanced RSI divergence signals.

• Confirmation Filters: Utilize an RSI centerline cross to improve signal accuracy and reduce false entries.

• Dynamic Exit Logic: In addition to Stop Loss and Take Profit, the EA can close trades based on RSI levels.

• Full Configurability: All RSI parameters, trade management settings, and strategy rules can be customized.

• Independent Trade Management: A unique Magic Number ensures the EA only manages its own trades, preventing conflicts with other robots or manual trading.

Trading Strategies & Signals

Entry Signal Logic

The user can select one of the following methods for generating entry signals.

1. RSI Divergence (Default Strategy)

This is the primary strategy, enabled by default. The EA identifies divergences between price action and the RSI oscillator over a configurable lookback period (default: 60 bars), which can signal a potential market reversal.

• Bullish Divergence (Buy Signal): Occurs when the price forms a new low, but the RSI forms a higher low. This indicates weakening downward momentum.

• Bearish Divergence (Sell Signal): Occurs when the price creates a new high, but the RSI forms a lower high. This indicates weakening upward momentum.

2. Overbought/Oversold Reversal

Users can disable divergence to trade a classic RSI reversal strategy.

• Buy Signal: Generated when the RSI crosses up from the oversold zone (default: below 30).

• Sell Signal: Generated when the RSI crosses down from the overbought zone (default: above 70).

3. Centerline Confirmation (Optional Filter)

For additional confirmation, this filter can be enabled. After an initial signal is generated (from either divergence or an OB/OS condition), the EA will wait for the RSI to cross the centerline (50) before executing the trade. This helps confirm a genuine shift in market momentum.

Exit Strategy Logic

The EA employs both fixed and dynamic exit conditions.

• Stop Loss & Take Profit: Every trade is protected by a fixed Stop Loss and a Take Profit level.

• RSI Level Exit (Enabled by Default): This dynamic exit closes positions based on the RSI's value. For example, a long position can be automatically closed when the RSI enters the overbought level (e.g., 70), securing profits as momentum wanes. A short position can be closed when the RSI enters the oversold level (e.g., 30).

Trade and Risk Management

The EA includes essential parameters for managing risk.

• Lot Size: Fixed lot size for all trades. (Default: 0.1)

• Stop Loss: Protective stop-loss in points. (Default: 500)

• Take Profit: Profit target in points. (Default: 300)

• Magic Number: A unique identifier for the EA's trades. (Default: 160941)

RSI Indicator Configuration

Users have full control over the RSI indicator settings.

• RSI Period: The lookback period for the RSI calculation. (Default: 14)

• Overbought Level: The threshold for the overbought zone. (Default: 70)

• Oversold Level: The threshold for the oversold zone. (Default: 30)

• Centerline: The midpoint of the RSI oscillator. (Default: 50)