Did you code this yourself? I’m no expert but these bits of code seem to contradict your description.
if((iRSIMQL4(NULL,0,Prd,PRICE_CLOSE,00)<Sell)) // Here is your open Sell rule
{
if(StopLoss>0) TheStopLoss=SymbolInfoDouble(_Symbol,SYMBOL_ASK)+StopLoss*MyPoint;
if(TakeProfit>0) TheTakeProfit=SymbolInfoDouble(_Symbol,SYMBOL_ASK)-TakeProfit*MyPoint;
trade.PositionOpen(_Symbol,ORDER_TYPE_SELL,TradeSizeOptimized(),SymbolInfoDouble(_Symbol,SYMBOL_BID),TheStopLoss,TheTakeProfit);
return;
}
and
if(PositionGetInteger(POSITION_TYPE)==POSITION_TYPE_SELL)
{
if((iRSIMQL4(NULL,0,Prd,PRICE_CLOSE,00)>Sellstop)) // here is your close sell rule
{
trade.PositionClose(ticket);
break;
Plus the weird bit that stands out is that it looks like an attempted conversion of an MQL4 to 5 code? The syntax is in the form of MQL4 and not MQL5. Also not sure how declaring the MAs, Stoch and Timeframes are supposed to help either.
I’m not an expert but the codes looks very messy and doesn’t appear to fulfill the described function. I’d code one from scratch if I were you and get rid of redundant lines of code and avoid conversion errors (try compiling the code). Probably the best place to try is the MQL5 forum.
No Nonsense Forex guy as in Victor Patrick? He’s got a very poor testing methodology. He bashes indicators and the RSI in particular when he’s using it standalone. No textbook recommends using oscillators standalone so not sure what he’s trying to prove.
If I remember the RSI video he cites (from about 2 years ago) he makes two alarming claims:
There’s no overselling/overbuying in forex: Don’t see how this is relevant if he understands the RSI formula
It’s outdated since it came out in 1978: The ATR he uses in his system was developed in the same year by the same guy. Don’t know why he chooses to point how supposedly outdated this is in this instance only.
Hopefully I’m not misremembering things, but I completely unsubbed from him and anything he has to say after I saw him butchering the use of the Ichomoku Kinko Hyo. Garbage explanation on his part.
Yeah, I guess we’re not all perfect. The argument against these indicators, apart from lagging is that overbought and sold positions can last days, if not weeks. That’s not much use, is it?
It is quite factual that overbought and oversold indicators are losing strategies long term. Unless, of course they’re confirmation to an otherwise probable trade based on price action movement.
As for Ichimoku, which I use, more to prevent me for making an unsuitable trade. It has stood the test of time, and used as intended - in a trending market - is a better than 50% indicator. As an aside to that, IMO, in today’s covid environment the only true probability is price action and timing.
Simple 4 Hour Chart with RSI 4 Period applied… High of 75 Low… of 25 to apply some smoothing.
Cross below the 25 is a Sell… Cross above the 75 is a Buy… A cross in the opposite direction reverses the trade… And Bingo… You have a viable RSI Strategy on the 4 Hour timeframe that has gained 1076 pips over the last 30 days… It won’t win every trade, but it will lose small and win large…
Even a new trader using 1:100 margin account and 0.05 lot positions should have added 660 whatevers to his/hers account…
Don’t want to use the GBPJPY… No problem, just layout the template and toggle through your favorite pairs until you find one that gives clean trading opportunities… Tweak the settings if it is required…
I have laid it all out so even Stevie Wonder won’t trip over it…
|
A few more examples…
EURUSD 4 Hour - 204 pips / 138 Buttons in 30 days of trading…
Bitcoin 4 Hour (Current) Chart with the same strategy applied… Manually back testing each Instrument across the previous 30/60/90 day period will display the slight tweaks required I explained in the original post…
Period is now 3, High is now 80… Low is now 20 which sharpens the Indicator for use on this volatile crypto… Gains 132,000 pips - Loses 4,000 pips = 128,000 across a 30 day period…
A strategy like this should require 15-30 mins per day…
It can be applied to the 15 min (Current) Chart only change erquired was to extend the Period to 4…
Using exactly the same entry and exit criteria as displayed in the original post a disciplined trader should have gained 43,800 pips and lost 1,800 pips = 42,000 pip gain across a 3 day period…
No Take Profits or Stop Losses (OMG!) have been used in any of these displayed strategies, Price Action and the Indicator alone allows you to implement such a simple strategy… Trial on a DEMO!!
So, I take it you close your position when it crosses in the opposite direction. That means you need to be in front of your screen virtually all day.
Unless you can set it up as an EA.
Have you tried to modify it so it could work as an EOD strategy?
@meza, You might want to sit there all day… OR you could just download a FREE RSI Alert Indicator for MT4 or MT5 (See Below) from MQL5 Website and apply the strategy to your chosen pair…
Set it up to send you an email or Notification to your mobile… You have a few hours to enter and exit each trade on the 4 hour time frame…
It’s pretty simple to test if you put some real thought into it…
@meza I used to trade a very similar strategy a few years back… If you search through my posts back in 2017 - 2019 you will see it’s not the first time I have posted this trading strategy… You will find trades posted live over a couple of weeks…
Only stopped at the time because a few of the “self appointed BP experts” got their panties all in a bunch… Would make for some interesting reading if you can be bothered to dig for it…
I have a couple of sharper strategies which I trade these days… That won’t see the light of day in BP…
Edit: You were here in 2008!.. nearly 10 years before me… You might have seen it in your travels…
This strategy of mine was working with RSI filtered with ADX.
->https://www.darwinex.com/darwin/KVL
It worked pretty well for 2 years.
99% of strategies fail
99% of srategies with RSI or other oscillators fail
99% of strategies with movng averages fail
99% of strategies with candlestick patterns AKA “price action” fail.
I’m no expert but apparently folks use other levels as well after studying and understanding the nuances of the RSI. Here’s an excerpt from this book that gives some insight:
@darthdimsky, good article that shows that what I have posted is not rocket science. Many traders before me have used similar concepts in their attempt to make the RSI profitable….
To offset the RSI values concurrent with the longer term trend is a characteristic that I had noticed when back testing, but never applied. So many thanks @darthdimsky for highlighting that text. It is something that I and other readers of your post can add to back testing this strategy.
There is many other Oscillators that can be applied in the same way? It’s really just converting the RSI to give it stochastic behaviour.
CCI, DPO, Trix, Williams%R etc. Virtually any bound indicator that displays the extremes (not strengths) of price action.
Every oscillator can be used for momentum or mean reversion.
As you pointed out with GBPJPY there has been a strong momentum inefficiency last month.
The point is that we dont’ know the inefficiency of the next month.
When the market is easy everything works without filters and with default parameters, not rocket science.
Rocket science is finding something that survives ad profits for years.
Hey @CavaliereVerde, yes, very true anyone can look like a demigod trader on a historical chart… No argument from me there. It’s now up to anyone that is interested to Demo trade the strategy and see if it works for them… The only way to be sure is to trade it forward and test the performance against the historical trades.
Above is Bitcoin 15 min TF… The position was up 14800 pips in yesterday’s screenshot. (24-25/07)
Now, on a follow up chart, it’s up to 23700 pips… a gain of nearly 9000 pips over a weekend.
I don’t cherry pick screenshots… If it doesn’t work on a current chart it’s most likely not going to work at all… Almost look at it as a FREE signal service… Only you have to generate your own signals…
Price Action is constantly changing from a Negative to Positive, or Positive to Negative algorithm which shakes traders out… Eg. You can trade an MA Cross strategy on a Monday and win every trade, then on Tuesday using exactly the same strategy, you lose on every position…
I see it constantly in ALL backtests that I do… I can’t really even explain what it is… But it’s this fluctuating backwards and forwards of Price Action behaviour that defeats Indicators and EA’s alike…
I honestly haven’t done the kind of legwork you and some of the other folks here have done for the RSI and the other indicators mentioned. Sorry, I can’t give a more informed opinion.
Reason I’m reading up on the stuff before applying it now is so I don’t develop any unfair biases from the various gurus telling you otherwise. More often than not an indicator doesn’t work for me because I’m not using it in it’s intended way or haven’t tested it properly. And I think that’s true for a lot of the self proclaimed gurus too. Hopefully, in time, I’ll have tested it as much as you guys have and be able to add more value.
Don’t know if you’ll find the rest these bits useful. More methods about the RSI from the same book. Really impressed by how folks use it.
ironieon-Yes, never take this useless SL on extreme volatile markets! SL is for losers! -Ironieoff You have a lot to learn. Dont say its low risk when you have exactly no moneymanagement! And hey, its a Demo! Show it on a real account. But I hope you will not. This is an account-killer.
