A GBP/USD Hourly Strategy Combining Stochastic, RSI, and SMA Crossovers

Summary

This strategy idea for GBP/USD on the hourly chart combines a five-period and ten-period simple moving-average crossover with stochastic momentum and RSI filters. Long entries require the faster average to cross above the slower one, stochastic momentum to rise, RSI to be above 45, and an averaged stochastic reading to remain below 45. Short entries reverse the crossover and momentum conditions, use RSI below 55, and require the averaged stochastic to remain above 55. Trades are restricted to a stated daytime window and use a profit target of 50 with a stop setting of 1000.

The author reports optimizing in-sample over 2014–2017 and says results looked good over 2013–2019, while earlier years were weaker. No performance figures, out-of-sample tests, or transaction-cost assumptions are provided. The author cautions that the large stop effectively leaves positions without a practical stop until the target or an opposite order occurs. The limited date range, weak earlier results, and potentially substantial unbounded losses make the idea dependent on further testing and risk controls.

Key ideas

• The hourly GBP/USD setup combines SMA crossovers with stochastic momentum and RSI filters.
• Long and short trades use mirrored trend conditions with distinct RSI and stochastic thresholds.
• The strategy restricts entries to a stated time window and sets a profit target and a very large stop.
• The author reports weaker performance in years before the optimization and evaluation periods.
• The large stop may leave trades open until a target or opposing signal, creating substantial risk.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.