I have developed this long-term trading strategy based on the relative strength index (RSI) indicator. Although the input parameters can be optimized for any currency pair, best results are achieved using EURUSD M15. The default parameter settings are for EURUSD M15.
The following parameters can be optimized:
- Take profit: the strategy makes use of the current market volatility in order to determine the take profit (TP) and stop loss (SL) values of each trade AUTOMATICALLY. Take profit determines how large the TP and SL levels are. Larger Take profit implies larger TP and SL.
- Risk: this is the % of the account balance which is risked for each trade.
- TH: this determines the threshold RSI level at which a trade is opened.
- per: this is the period of the RSI indicator.
See 5 year backtest below.