RSI2 Daily EA
Developed by Larry Connors, the RSI-2 period strategy is a mean reversion trading strategy designed to buy or sell in the direction of the major trend after a corrective period. RSI-2 Daily is an Expert Advisor that tries to apply Larry Connors RSI-2 strategy on Forex pairs, indices and stocks.
The strategy is designed to be used on daily bars, however it is a short term trading strategy. The normal length of time in a trade is 2-4 days. Trades will not be taken very often.
The strategy of the RSI-2 Daily Expert Advisor can be explained in the following steps (please also see separate screenshot):
- Look for buy opportunities when price is above MA 200 and RSI-2 moves below 10-4, which is considered oversold.
- Look for sell opportunities when price is below MA 200 and RSI-2 moves above 90-96, which is considered overbought.
- Exit on open of the candle where price is above/below or equal to the signal MA (5, 6 or 7).
The EA is NFA FIFO compliant and supports ECN accounts.
- Time frame to operate on - Default is D1. This value should normally not be changed in order for the strategy to work properly.
- Send alert instead of opening trade - When set to 'true' an alert will be sent instead of opening a trade.
- ECN account - Set to 'true' if your account does not allow setting take profit and stop loss when the order is placed.
- Open buy/sell order - 'true' or 'false'.
- Trade only between given times (computer time) - Hour filter for opening trades. Should be set to 'false'.
- Trade from/to time - Hour from/to.
- Maximum allowed slippage in points - Please note that not all brokers/account types support slippage control.
- Maximum allowed spread in points (0 = not used) - Can be set to avoid taking trades with high spread directly after midnight market opening for those who have variable spreads.
- Risk in percentage (>0 = auto lot) - If set to 0 the Manual lots value below will be used. Sets the risk for the trade based on Account Free Margin. It will implement true risk only if combined with a stop loss.
- Point value for risk percentage - Default is 1. Is normally not changed. Only in some rare cases where the broker has unconventional tick values for CFDs. A setting of 0.1 could then be used.
- Manual lots - Will be used if Risk above is set to 0.
- Stop loss - Stop loss should normally not be used with this strategy. Positions will be closed automatically when price has reached the signal MA.
- Take profit - Take profit level. Normally not used with this strategy.
- Trailing stop - Will trail the stop loss constantly with the distance you have set as soon as the trade is in profit. If the Trailing step parameter is set to 0 then the trailing stop will be adjusted each 3rd second.
- Trailing step - The trailing stop will be adjusted every time the price has moved the amount of points you have set here.
- Break-even - Break-even level.
- Break-even trigger - Price has to reach this level before the stop loss will be moved to break even.
- Exit strategy - This is a drop-down list with the following exit selections:
- Candle open at signal MA - default.
- Price reached signal MA - without waiting for candle close.
- Manual - if you would like to use your own custom SL and TP.
- Exit at break even (when in loss at regular close) - When 'true' the selected exit strategy will be set aside and the exit will occur as soon as the price has reached the order open price. The exit will be done in stealth mode and without waiting for candle close. This should not be considered as a true break-even though since negative swap and commissions are not calculated.
- RSI period - Default is 2 and should be left this way in order for the strategy to work properly.
- RSI buy level - Set to 90-96 according to your back testing.
- RSI sell level - Set to 10-4 according to your back testing.
- RSI exit long/short position - Used only if the RSI exit strategy has been selected. The exit will be done as soon as this RSI level has been reached.
- Trend MA period - Default is 200.
- Trend MA time frame - Default is D1.
- Signal MA period - Default is 6. Here could be used also 5 or 7, depending on the results of your back testing.
- Signal MA shift - Default is 1. For some FX pairs a setting of 2 will work better.
- Magic number
- Order comment
- added possibility for trailing step