slow with the defsult settings.
To jlmac27
Thank you, dobro
Hi guys,
I have been back testing this system for a while now. I have also attached a couple of trades which I had done. We can use the Parabolic SAR to determine our stop losses and initial profit take. Instead for shooting at 20 pips or less, this indicator can give us more.
- Enter a buy/short trade as RSI is crossing the 80 / 20 lines respectively.
- Look for the PSAR to reverse in the next candle/candles.
- Once the PSAR dot appears on the opposite side, look at the value and place your S/L. 97% of all trades I have done, this seems to work where I have never been stopped out.
- Once the trade is moving in your direction, keep the trade open untill you do not see the first PSAR dot appear in the opposite direction of your trade.
I have used this trades mainly in my one and four hour charts and it has worked beautifully.
Tell me what you all think.
Sean
Let me update this strategy and point out some important stuff.
This RSI system gives fewer trades. Well, I prefer going with Daily / Weekly RSI lower-risk higher profit target.
Now, 20 pips for a 4-h chart might seem reasonable.
If you watch USDCAD now… On 1-w chart, it’s at 17 (RSI). I think it’s a point to call for a strong bounce on USDCAD sooner or later, but you would see a slightly bigger drawdawn if it managed to go below the 0.9710 band.
Please use MT4 from Northfinance only, the RSI values can differ on brokers, and on VT especially. Thus, making it not very accurate entry.
I prefer entering the first buy at the first touch of 20, then adding to longs with every new dip below 20, 19, 18, 17… that’s pair max. extreme if I ever remember. and vice versa.
You’ll have fewer trades, but you can really make guaranteed pips If you wisely managed your trade.
Counter trend trade as RSI dives below 17, 16.88 on weekly chart and ignoring oversold area.
Recommendation is to buy with money management in mind, and risk to downside remains there but a strong bounce is expected after all this.
This trade setup is for agressive traders only.
No SL but add to your position every 50 pips in downside.
nothing much to say but great thread
sandeep 
Hey topchess, are you still using this system? If so, how’s it working now that it’s 5 month later since a last post?
Just curious.
Thanks
[B]This is definitely an interesting strategy, anyone care to update us on how this has been working up to this point?..[/B]