Simple EUR/GBP RSI Hedge System:

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finally
51
finally  

I've been testing an idea for the last few weeks on a demo. account and have managed to make money.

I would suggest demoing this idea first because the idea needs to be developed and hopefully be turned into a winner.

System:

Open a 4 hour chart on eur/usd and gbp/usd.

On each chart add an RSI (8).

Go long the pair with the higher RSI and Go short the pair with the lower RSI.

When the RSI'S switch reverse your position.

No profit targets and no stops.

Initial opening position should be around 5% of account value.

As I said, I have had success on the demo account and I just started trading live (very small size).

Hopefully, you can add some ideas such as how to optimize the entry.

Perhaps RSI'S should ideally be at a certain level in order to enter trade; perhaps other indicators or supports and resistances can be helpful, etc.

I think if we can find a creative way to optimize the entry, this could do well.

Any and all ideas are welcome.

PriNova
110
PriNova  

here we go. i wrote an indicator calls spreader. this shows you the difference between to instruments in their correlation.

i use this with eurusd und gbpusd.

how to use:

open eurusd 5m chart. put the spreaderv0.2 on it. use the default settings.

in the settingfield symbol2 use the second instrument. if you do not use ibfx-broker then delete the 'm' for the symbol. then attach the stochasticsymbol-indi with setting 72,3,3 and put in the symbol variable the crosspair. here it is eurgbp. now attach a second spreader indi and switch the variable OneBar to true. and put a second stochasticsymbol-indi with setting 3,3,3 and eurgbp.

now i explain the spreader. everyday put the actual date in the Date-variable with 0 o'clock as referencetime (i use UTC-2). watch between 7-14h (london session) for entry's. the white histogramm shows eurusd and the orange histo shows gbpusd. if both stochastic is under 15% or over 85% and the red line in the spreader indi is min. over 30 or under -30point this is an opportunity to open a trade. now you have to look at the spreader where onebar-var is set to false. if gbpusd is more valued then eurusd you have to SHORT GBPUSD and LONG EURUSD. if eurusd is more valued than gbpusd then open orders in the other direction. i put a picture below where it shows the entrys. einstieg = entry and handelsfrei zone = no trading area

the first picture explains the indies and the second picture is the chart with real setups yesterday. the blue rectangle marks the entries.

for exit the red spreadline have to go back min. 30 point to get good profits.

if the day at 21h shows no profits close the orders anyway.

i made some statistics with the last 32day. this is not much but shows some examples. the statistics shows how many entried you got per day. 0(zero) means a day with loss. the other numbers at the left shows the amount of signals per day. the probabilities are high but you have to manage the losses small and the profit high to gain good money at the end of month.

0 = 4times

1 = 6 times

2 = 13 times

3 = 8 times

4 = 1 time

now lets have some discussions about and gain some pips.

btw use brokers with really small spreads.

finally
51
finally  
PriNova:
here we go. i wrote an indicator calls spreader. this shows you the difference between to instruments in their correlation.

i use this with eurusd und gbpusd.

how to use:

open eurusd 5m chart. put the spreaderv0.2 on it. use the default settings.

in the settingfield symbol2 use the second instrument. if you do not use ibfx-broker then delete the 'm' for the symbol. then attach the stochasticsymbol-indi with setting 72,3,3 and put in the symbol variable the crosspair. here it is eurgbp. now attach a second spreader indi and switch the variable OneBar to true. and put a second stochasticsymbol-indi with setting 3,3,3 and eurgbp.

now i explain the spreader. everyday put the actual date in the Date-variable with 0 o'clock as referencetime (i use UTC-2). watch between 7-14h (london session) for entry's. the white histogramm shows eurusd and the orange histo shows gbpusd. if both stochastic is under 15% or over 85% and the red line in the spreader indi is min. over 30 or under -30point this is an opportunity to open a trade. now you have to look at the spreader where onebar-var is set to false. if gbpusd is more valued then eurusd you have to SHORT GBPUSD and LONG EURUSD. if eurusd is more valued than gbpusd then open orders in the other direction. i put a picture below where it shows the entrys. einstieg = entry and handelsfrei zone = no trading area

the first picture explains the indies and the second picture is the chart with real setups yesterday. the blue rectangle marks the entries.

for exit the red spreadline have to go back min. 30 point to get good profits.

if the day at 21h shows no profits close the orders anyway.

i made some statistics with the last 32day. this is not much but shows some examples. the statistics shows how many entried you got per day. 0(zero) means a day with loss. the other numbers at the left shows the amount of signals per day. the probabilities are high but you have to manage the losses small and the profit high to gain good money at the end of month.

0 = 4times

1 = 6 times

2 = 13 times

3 = 8 times

4 = 1 time

now lets have some discussions about and gain some pips.

btw use brokers with really small spreads.

Thanks for sharing your idea.

My 72/3/3 stochastics are just basically a flat line with no up or down movement. Are you sure that this setting is correct?

Thanks

finally
51
finally  
PriNova:
here we go. i wrote an indicator calls spreader. this shows you the difference between to instruments in their correlation.

i use this with eurusd und gbpusd.

how to use:

open eurusd 5m chart. put the spreaderv0.2 on it. use the default settings.

in the settingfield symbol2 use the second instrument. if you do not use ibfx-broker then delete the 'm' for the symbol. then attach the stochasticsymbol-indi with setting 72,3,3 and put in the symbol variable the crosspair. here it is eurgbp. now attach a second spreader indi and switch the variable OneBar to true. and put a second stochasticsymbol-indi with setting 3,3,3 and eurgbp.

now i explain the spreader. everyday put the actual date in the Date-variable with 0 o'clock as referencetime (i use UTC-2). watch between 7-14h (london session) for entry's. the white histogramm shows eurusd and the orange histo shows gbpusd. if both stochastic is under 15% or over 85% and the red line in the spreader indi is min. over 30 or under -30point this is an opportunity to open a trade. now you have to look at the spreader where onebar-var is set to false. if gbpusd is more valued then eurusd you have to SHORT GBPUSD and LONG EURUSD. if eurusd is more valued than gbpusd then open orders in the other direction. i put a picture below where it shows the entrys. einstieg = entry and handelsfrei zone = no trading area

the first picture explains the indies and the second picture is the chart with real setups yesterday. the blue rectangle marks the entries.

for exit the red spreadline have to go back min. 30 point to get good profits.

if the day at 21h shows no profits close the orders anyway.

i made some statistics with the last 32day. this is not much but shows some examples. the statistics shows how many entried you got per day. 0(zero) means a day with loss. the other numbers at the left shows the amount of signals per day. the probabilities are high but you have to manage the losses small and the profit high to gain good money at the end of month.

0 = 4times

1 = 6 times

2 = 13 times

3 = 8 times

4 = 1 time

now lets have some discussions about and gain some pips.

btw use brokers with really small spreads.

If both histograms are under zero and the white histogram is further under zero than the pound, in this case which pair is weaker?

PriNova
110
PriNova  

take the stochasticsymbol-indi in the second post. if u have ibfx broker you have to add 'm' as suffix to your currencypair. otherwise eurgbp. import is that you have also collected 5m data from eurgbp.

if the white histogramm (eurusd) is further away from the orange (gbpusd) then eurusd is the stronger one (below zero long eurusd / short gbpusd, above zero short eurusd / long gbpusd) if gbpusd is further away from eurusd then above zero short gbpusd/ long eurusd. below zero long gbpusd / short eurusd

finally
51
finally  
PriNova:
here we go. i wrote an indicator calls spreader. this shows you the difference between to instruments in their correlation.

i use this with eurusd und gbpusd.

how to use:

open eurusd 5m chart. put the spreaderv0.2 on it. use the default settings.

in the settingfield symbol2 use the second instrument. if you do not use ibfx-broker then delete the 'm' for the symbol. then attach the stochasticsymbol-indi with setting 72,3,3 and put in the symbol variable the crosspair. here it is eurgbp. now attach a second spreader indi and switch the variable OneBar to true. and put a second stochasticsymbol-indi with setting 3,3,3 and eurgbp.

now i explain the spreader. everyday put the actual date in the Date-variable with 0 o'clock as referencetime (i use UTC-2). watch between 7-14h (london session) for entry's. the white histogramm shows eurusd and the orange histo shows gbpusd. if both stochastic is under 15% or over 85% and the red line in the spreader indi is min. over 30 or under -30point this is an opportunity to open a trade. now you have to look at the spreader where onebar-var is set to false. if gbpusd is more valued then eurusd you have to SHORT GBPUSD and LONG EURUSD. if eurusd is more valued than gbpusd then open orders in the other direction. i put a picture below where it shows the entrys. einstieg = entry and handelsfrei zone = no trading area

the first picture explains the indies and the second picture is the chart with real setups yesterday. the blue rectangle marks the entries.

for exit the red spreadline have to go back min. 30 point to get good profits.

if the day at 21h shows no profits close the orders anyway.

i made some statistics with the last 32day. this is not much but shows some examples. the statistics shows how many entried you got per day. 0(zero) means a day with loss. the other numbers at the left shows the amount of signals per day. the probabilities are high but you have to manage the losses small and the profit high to gain good money at the end of month.

0 = 4times

1 = 6 times

2 = 13 times

3 = 8 times

4 = 1 time

now lets have some discussions about and gain some pips.

btw use brokers with really small spreads.

Are you basing your entry on the spreader with the "false" or on the spreader with the "true"?

PriNova
110
PriNova  

on both. the spreader with onebar true must have a red line peak and the spreader with onebar = false should have minimum the red line under -30/ over 30 points

finally
51
finally  
PriNova:
on both. the spreader with onebar true must have a red line peak and the spreader with onebar = false should have minimum the red line under -30/ over 30 points

"What exactly is a " peak"?

Is it when the red (or white) histogram is making a new high or low?

Thanks

finally
51
finally  
finally:
"What exactly is a " peak"?

Is it when the red (or white) histogram is making a new high or low?

Thanks

Let me make sure that I understand you correctly:

In order to short gbp and buy eur the following conditions must set-up:

1)The spreader (with the "false" one-bar) must have orange histogram bigger than white histogram. Does the histogram have to be making a new high or low?

2) The red line on the spreader (with the "true" one-bar) must be above or below 30.

3)Both stochastics should be either over 80 or under 20.

4) Do BOTH histograms have to agree? What I mean by that is let's say in the "true" spreader orange is bigger than white, does orange also have to be bigger than white in the "false" spreader?

Do both have to agree?

Thanks

Michael

PriNova
110
PriNova  
finally:
Let me make sure that I understand you correctly:

In order to short gbp and buy eur the following conditions must set-up:

1)The spreader (with the "false" one-bar) must have orange histogram bigger than white histogram. Does the histogram have to be making a new high or low?

And have to be above Zeroline

2) The red line on the spreader (with the "true" one-bar) must be above or below 30.

Must be above 30 or below -30

3)Both stochastics should be either over 80 or under 20.

the best is 85% or 15%

4) Do BOTH histograms have to agree? What I mean by that is let's say in the "true" spreader orange is bigger than white, does orange also have to be bigger than white in the "false" spreader?

Do both have to agree?

that's correct

Thanks

Michael

if stoch 3,3,3 is over-/undervalued and spreader (red line) with setting onebar true is over/under 30/-30 and stoch 72,3,3 is also above 85% or below 15% you very often got the turningpoint. compare the entry with EURGBP. if this is true then another very accurate trendreverse tool you have in your pocket.

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