The DailyFX RSI Strategy uses a simple yet effective RSI trading strategy. Quantitative strategists from DailyFX.com developed this strategy’s logic after examining millions of trades to find the most effective use of the Relative Strength Index (RSI).
This specific strategy is most effective when used with an appropriate “risk/reward” ratio as outlined in the article, “What is the Number One Mistake Forex Traders Make?” by David Rodriguez, Quantitative Strategist.
By default, the DailyFX RSI strategy 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.
Variables such as RSI Period, Overbought, Oversold, Limit and Stop levels can all be customized using the strategy’s inputs.
The following inputs are available in the strategy’s parameters window and can be defined by the app user:
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.
There is no guarantee that the systems, trading techniques, trading methods, and/or indicators will result in profits or not result in losses.
This strategy is only compatible with FXCM Trading Station Desktop software. Additionally, an FXCM account is required (including free FXCM demo accounts).
You must have Microsoft .NET Framework 4 installed on your computer. This software is included in the strategy’s installation file.
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