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.
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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…
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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.
Figure 18.15 as referred to in the text:
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I’ll test Trade (Demo) it forward over the next 2 days and will post results as shown below…
Above is Bitcoin 15 min TF… 2 more positions over the last 24 hours. (26/07)
Up 43500 pips since the last screenshot… Low risk using no TP’s, no SL’s and 0.05 Lots… 1:100 Margin Account…
I’m confident it will be profitable… Really doesn’t get much easier than this…
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.
@Ravenash, You have been here for all of 24 hours and you are throwing pleasantries around…Please extend on the comment above… It makes no sense…
At the very least, please bother to read a few posts before commenting on others strategies…
Risk Management has two components, a small 0.05 lot size… Don’t swing for the fences on any positions… The RSI 4 is used for dynamic TP and SL levels…
A Sell signal closes a Buy Position and a Buy signal closes a Sell… If price is above a Sell Position when a Buy Signal is displayed it becomes a dynamic SL… If price is below a Sell Signal it becomes a dynamic TP… And vice versa…
Edit: In my original post (If you had read it) I stated that this concept should be trialed on the 4 Hour TF. I am only using the 15 min chart to demonstrate the strategy in a compressed amount of time… Most don’t have the attention span to watch a strategy demoed over a couple of weeks…
I am just displaying what can be achieved if new traders apply outside of the box thinking with any standard Indicator…Everyone should run any new concept on a Demo (Just as you do!) until they understand the characteristics of the strategy.
I am going to post two more charts over the next 48 hours, lets see how it performs… Then feel free to critique this strategy…So, until then sit back… be quiet… and enjoy the show.
“The simplest strategies are often the best…”
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sorry for been blunt but your wasting your time
Please show your findings. Testing methodology, strategy and follow up numbers would be useful. Else you’re just trolling.
@greenscorpio, Relax, you’ll only have to suffer through one more installment…
Below is Bitcoin 15 min TF… 4 more positions over the last 24 hours. (27/07)
Using exactly the same entry and exit criteria as displayed in the original post, you should have gained 44,200 pips and lost 3,700 pips = 40,500 pip gain across a 24 hour period…
Using the RSI 4 as dynamic risk management. TP’s, no SL’s and 0.05 Lots… 1:100 Margin Account…
“The simplest strategies are often the best…”
Below is Bitcoin 15 min TF… Another 4 positions, a few small wins and a miniscule loss inside some tricky ranging Price Action over the last 24 hours. (28/07)
Using exactly the same entry and exit criteria as displayed in the original post, you should have gained 17,360 pips and lost 560 pips = 16,800 pip gain across a 24 hour period…
24th July to 28th July results have been traded forward… and posted live here on BP…
109,800 pips on a Bitcoin 15min Chart
Using the RSI 4 as dynamic risk management. TP’s, no SL’s and 0.05 Lots… 1:100 Margin Account…
Honestly don’t know how so many of you manage to make trading so f’king complicated…
Is this a regular RSI indicator? Screen states RSI-X (not familiar with Pepperstone).
I’ve written simple MT4 EA for this strategy and it seems to not have consistency nor correlation between pairs.
RSI(4, 80/20) is profitable for EURUSD only for 1D and 1H timeframes (Jan-Jul 2021)
For GBPUSD barely profitable on 1D, losing on any other
For USDJPY profitable on 1D, 4H, barely on 1H
For AUDCAD barely profitable on 1D.
Taking the test to 2020 - totally different timeframes comes out profitable. That makes me wonder what kind of RSI are you using and if it is only usable on BTC. It seems not to work on FX with vanilla RSI. There are Period/Levels/Timeframe combinations that are profitable in some periods, but this is the case of curvefitting for given pair.
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Hi @wilczasty, It’s the standard RSI Logic. It’s an indicator that I have coded Xtra functionality into by adding chart based arrows, coloured levels, a centreline(50), and sound and push notification alerts…
Hence RSI-X
MT4 is so basic compared to the Ctrader 4.1 Platform that I use… I have shown this across many posts here in BP, follow this link to a Platform comparison and you will see why!
MT4 has no back testing optimisation function that removes all the guess work from back testing time frames, Lot sizes and values…
Now where do I start… You guys are going to have to read more before commenting on strategies posted here in the forum… I stated in 2 of the original posts that the values of this strategy have to be slightly altered (tweaked) for each pair…
“Don’t want to use the GBPJPY… No problem, just layout the template and toggle through your favourite pairs until you find one that gives clean trading opportunities… Tweak the settings if it is required…”
“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…”
That should take care of the adjusting the parameters for each pairs behaviour and market volatility.
Adjusting Indicator or Bot parameters for each trading instrument can definitely be defined as curve fitting… Just not in the true sense… If I was to change the parameters across those 4 days of testing… that would display a curve fitted result and would be a false representation of the strategy on trial…
@CavaliereVerde, has often stated that there is no Holy Grail and finding something that survives and adds profits for years. is impossible, and he is absolutely correct…
Trading is similar to marketing, your target market is constantly changing and evolving and so your marketing has to adapt and be continuously updating the message…
Trading these markets is no different, we have a constantly changing environment, trending or ranging, volatile or flat. A set of market conditions that are nearly impossible to cover (I’m confident someone has) with just one strategy.
In this simplified RSI 4 example I have demonstrated how to get the RSI to perform better than it’s standard application… Not getting caught in a SELL while the RSI 14 dances along above the 70 level for extended periods or a BUY while it criss-crosses the 30 level… With risk management to boot…
I don’t cherry pick strategy demonstrations like many of the droning Gurus in FX Education…
The demonstrated 15min (Current Chart) strategy has run into a wall where price action has generated a run of small losses… This is a common strategy development (Coded Logic) issue that competent back testers have to solve on a weekly basis…
Anyone care to take a stab…??
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Edit: BTW… The Bitcoin 4 hour chart over the same 4 day period July 24 to July 29…
Buy signal displayed on 23 July at 7.00am (UTC +10) Up 76,300 pips with less stress, less work…
Even a sloth could profit from this strategy…
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