The strategy trades GBPUSD based on a momentum indicator, the Relative
Strength Index (RSI). Only one order per day is allowed. There are 2
types of orders: type A and type B.
Orders type A can be opened from 6 AM to 15 PM and from Monday to
Thursday; on Fridays, the schedule is different, from 6 AM to 12 AM.
The trading period for orders type A is 1-hour, whilst for orders type
B, the period is 10-sec.
To open a buy order type A, the following conditions have to be
verified: the RSI(current bar) equal or lower than 30; the
RSI(previous bar) equal or lower than 30; spread equal or lower than 2
pips; and the difference between the daily high and the daily low
equal or higher than 75 pips.
To open a sell order type A, the following conditions have to be
verified: the RSI(current bar) equal or higher than 70; the
RSI(previous bar) equal or higher than 70; spread equal or lower than
2 pips; and the difference between the daily high and the daily low
equal or higher than 75 pips.
The orders type A have the following assignments: take profit @ 10
pips; stop loss @ -55 pips; and slippage @ 2 pips. If equity drops
below 99.000, the take profit assignment of orders type A changes from
10 pips to 25 pips.
The orders type B can be opened from 15 PM to 24 PM and from Monday to
Thursday; on Fridays, the schedule is different, from 12 PM till the
close of trading.
To open a buy order type B, the following conditions have to be
verified: the RSI(current bar) equal or lower than 30; the
RSI(previous bar) equal or lower than 30; spread equal or lower than 2
pips; and the difference between the daily high and the daily low
equal or higher than 45 pips.
To open a sell order type B, the following conditions have to be
verified: the RSI(current bar) equal or higher than 70; the
RSI(previous bar) equal or higher than 70; spread equal or lower than
2 pips; and the difference between the daily high and the daily low
equal or higher than 45 pips.
The orders type B have the following assignments: take profit @ 1/2 of
take profit assignment of orders type A; stop loss @ -55 pips; and
slippage @ 2 pips.
The order’s amount for both type A and B is calculated according to
the following expression: 7 million x current equity / 100.000. If
equity rises above 175%, the script sends an instruction to close the
order filled in the system.