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DailyFX Asia Range Strategy

Developer: FXCM

Description

The DailyFX Asia Range Strategy is a RSI strategy specifically designed for use during the Asia trading hours, typically between 2PM and 6AM New York time (19:00 – 11:00 GMT).

DailyFX’s quantitative strategists examined 10 years of trade data to develop this strategy. They found that the data showed a significant advantage for traders who used Range based strategies on the European currency pairs during the Asia trading hours.

This specific strategy is most effective when used with an appropriate “risk/reward” ratio as outlined in the article, “When is the Best Time of Day to Trade Forex” by David Rodriguez, Quantitative Strategist.

Trading Logic

By default, the DailyFX Asia Range system buys and sells according to crosses of a 14-period RSI.

A buy trade is created, at the open of the next bar, when the 14 period RSI crosses above 30.

A sell trade is created, at the open of the next bar, when the 14 period RSI crosses below 70.

The strategy will only have one trade open at any given time.   If an existing DailyFX RSI trade is open, and due to price movements a new signal is created in the opposite direction, the strategy will close the first trade and open a new trade provided the above trading logic is met.

The strategy will only execute trades between the selected StartTime and StopTime.  Those settings are by default set during the above mentioned Asia trading hours (19:00 – 11:00 GMT).

Variables such as RSI Period, Overbought, Oversold, Limit and Stop levels can all be customized using the strategy’s inputs.

Parameters

The following inputs are available in the strategy’s parameters window and can be defined by the app user:

  • LotSize: trade size
  • StopLoss: The stop price, as defined by a number of pips away from the open price
  • TakeProfit: The take profit (limit) price, as defined by a number of pips away from the open price
  • RSIPeriod: The look-back period for RSI.  A lower number increases sensitivity.
  • RSIOverbought: The RSI level the strategy uses to determine an Overbought condition
  • RSIOversold: The RSI level the strategy uses to determine an Oversold condition
  • StartTime: Specifies the time the strategy will start trading in EST (New York time). The default is set at 14:00 (which is 19:00 GMT)
  • StopTime: Specifies the time the strategy will stop trading in EST (New York time). The default is set at 06:00 (which is 11:00 GMT)
Risk Disclaimer

The application displayed on this page does not take in to consideration your individual personal circumstances and trading objectives. Therefore it should not be considered as a personal recommendation or investment advice. Past performance is not indicative of future results.

Requirements

This Strategy is only compatible with FXCM Trading Station Desktop software. Additionally, an FXCM account is required (including free FXCM demo accounts).

There is no guarantee that the systems, trading techniques, trading methods, indicators will result in profits or not result in losses.

You must have Microsoft .NET Framework 4 installed on your computer. This software is included in the EA installation file.

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