GG-RSI-CCI - a ready-made strategy in an indicator
There are many indicators In this case, it is a combination of two or more others, the so-called "folk hodgepodge". One of these is GG–RSI–CCI. It combines 2 moving averages, the popular RSI and an equally common indicator CCI. That's what we'll look at.
Principles of operation of the indicator
Indicator GG–RSI–CCI informs the trader about the current trend as follows: green histogram - bullish trend, red histogram - bearish trend, yellow - flat or sideways. This indicator can be easily customized for a particular trader or trading system. Both the color of the histogram lines and the indicator periods can be adjusted.
The variable Ind_Period is responsible for the period RSI indicators The variables Avg_Period1 and Avg_Period2 are responsible for the periods of moving averages, by default they are set to 8 and 14 respectively.
Figure 1. GG-RSI-CCI with standard settings.
Indicator GG-RSI-CCI DOES NOT redraw its values (except for the current bar, of course), and its basis of standard indicators with the possibility of customization gives us almost ready-made trading system in one indicatoras well as an open field of thought.
Testing of indicator operation
But is everything so cloudless? It was decided to trade only with its help, using the standard settings. Positions were opened on M5, on currency pairs GBP/USD, EUR/USD, AUD/USD, NZD/USD. The trend on the H1 timeframe was taken into account, also according to the GG-RSI-CCI indicator. The lot was constant, TakeProfit was 30 points, StopLosses were 20 points each. Figure 2 shows the equity of the experiment:
Figure 2. Profitability graph of the experiment.
As you can see, the GG-RSI-CCI indicator itself is not so serious. A succession of losing trades makes us realize that it is necessarily filter is required when trading with it, then at standard settings of the indicator equity will go up quite confidently. The simplest filter is the same GG-RSI-CCI, only with a larger period, provided the entry is "junior after big" or simultaneously.
Figure 3. GG-RSI-CCI with filter, the senior indicator is at the bottom.
In Figure 3, the arrows show the entries into positions. As you can see, there are some unprofitable ones, but they are less than without using the senior indicator. For the same reason TakeProfit should always be higher than StopLoss, but this is already from the rules of money management and everyone is familiar with it. However, you should always take into account the trend on other timeframes.
ConclusionThe GG-RSI-CCI indicator can clearly become a part of a good trading system or Expert Advisor, the main thing is to look at the market more broadly, and trade more flexibly. Profits to all!