The RSX Based Trend Trading Strategy
The RSX Based Trend Trading Strategy - Another system based on the use of moving averages with two additional oscillators as filters.
Input parameters
- Currency pairs: any
- Timeframe: H1 and older
- Bidding time: any
- Risk management: after calculating the stop-loss, choose this lot sizeto risk no more than 2-5% of the deposit per transaction
Used indicators
- alb_qqe2.02_advanced_alertsarrows_nmc (swing count 3, speed 1.2)
- TDI rsx based - smoothed & alerts + lines + divergence nmc (2 period)
- Ehlers Fisher transform (2.5, 8 period, median)
- Simple moving average (11 period, median price)
- Simple moving average (21 period, median price)
- Simple moving average (50 period, median price)
Setting up the price chart
- Unpack the archive
- Copy the template into the templates folder
- Copy the indicators to the folder MQL4 -> indicators
- Restarting the terminal
- Open the chart of the desired currency pair
- Install a template named RSX Based Strategy
The schedule should look like this:
Rules for determining the trend
Since the RSX Based Strategy is a trending strategy, it is recommended to open trades only in the direction of the current trend, which is determined by using moving averages.
- The upward trend: MA11 > MA21 and MA50;
- downtrend: MA11 < MA21 and MA50.
Signals indicating the opening of a long position
- MA11 crossed from below to above MA21 and MA50;
- the TDI rsx based indicator line is green;
- bar indicator Ehlers Fisher transform blue.
- indicator alb_qqe2.02 is green.
Signals indicating the opening of a short position
- MA11 crossed MA21 and MA50 from top to bottom;
- the TDI rsx indicator line is red;
- Ehlers Fisher transform indicator bar in red.
- indicator alb_qqe2.02 is red.
Setting Stop Loss and Take Profit Orders
- stop loss is set above/below the moving average with a period of 21;
- Take Profit is set to a minimum of 40 pips and depends on the used timeframe.
Recommendations for using the RSX Based Strategy
As an alternative, the author of the strategy proposes to use only two simple moving averages with periods of 6 and 21. This method is more aggressive and will give more signals for entry, but their accuracy will deteriorate.
The use of moving averages in any trading strategy is associated with one disadvantage, which is inherent to the Moving Average indicator, namely, lagging. This is the reason why it is recommended to use higher moving averages for trading. timeframes. In addition, you can try to replace the conventional MAs with alternative moving averages, such as HullMA, in which the lag is minimized.
Before using RSX Based Trend Trading Strategy If you have a real deposit, be sure to test it on a demo account.
Download RSX Based Strategy Template and Indicators