RSIMACDprob4_3 strategy is based on the opening trades using RSI(14)
and MACD(12 26 9) momentum indicators and two Historical Candles. The
strategy works for both side trades opening. The strategy is adjusted
to open orders one times per hour in case the all parameters set are
in line. Just one order could be opened simultaneously. I use 1H
period for both RSI(14) and MACD(12 26 9) indicators as well as for
Historical Candles. First of all the strategy evaluates number of
open
positions. When open positions amount is zero the strategy evaluates
two momentum indicators, i. e. 1H RSI(14) and 1H MACD(12 26 9). At
the
same time it waits for Historical Candles opening and closing. If the
height of two Historical Candles pointing in the same direction is
more than 30 pips and the height of the last Historical Candle is
less
than 6 pips the strategy does not open any position. And if the
height
of single Historical Candles is more than 30 pips and less than 6
pips
it does not open any position as well. Shift integer parameter of the
Historical Candles is set to 1. The indicators work as follows: if
the
RSI is turning down below 50 it means that the losses are greater
than
the gains, and at the same time the MACD line on 1H MACD indicator is
below the MACDSignal (MACD signal line) showing that downside
momentum
is increasing, a sell position is being opened. However, when the RSI
is above 50, it means that the gains are greater than the losses and
the MACD line on 1H MACD indicator is above the MACDSignal, which
signals upward momentum, a buy position is being opened. Signal line
crossovers provide evidence that the trend in the stock is about to
accelerate in the direction of the crossover but we need a
confirmation of the momentum as well. That’s why we are using the
RSI indicator. In this case, the centre line for the RSI is 50, which
is seen as both the support and resistance line for the indicator. I
use EUR/USD pair just because I am watching it for a quite long time,
so in comparison with other currency pairs the movement of EUR/USD is
better known for me. More over the EUR/USD volatility is not too high
and it significantly decreases the risk of big losses. The SL has
been
set at 150 pips, in my opinion it’s the optimal figure taking into
account the recent volatile market. The low settings of SL in such a
situation could lead to often and significant losses. The TP has been
set at 4 pips, it was configured by my personal experience I gained
working with EUR/USD. Trade volume is changeable and depends on
equity. However, the initial trade volume has been set at 7 lots.