EUR/USD Strategy Using Smoothed RSI Threshold Crossovers

Summary

This symmetrical EUR/USD strategy uses separate smoothed RSI signals for long and short entries. For longs, it calculates a 10-period RSI and smooths it with a 20-period exponential moving average; a cross above 50 triggers an entry. For shorts, it uses a 30-period RSI smoothed by a 30-period EMA, entering when that line crosses below 50. Each direction has its own configurable profit and loss exits, set in the published rules to equal distances of 50 pips.

The author specifies EUR/USD on the one-hour timeframe and cautions that other pairs and timeframes require recalibration of the RSI smoothing and exit distances. The page describes backtest assumptions of $100,000 initial equity, full-equity order size, and no pyramiding, but supplies no performance statistics. The author also acknowledges that the strategy was developed with hindsight and that past results do not guarantee future performance.

Key ideas

• Long entries occur when the EMA-smoothed 10-period RSI crosses above 50.
• Short entries occur when the EMA-smoothed 30-period RSI crosses below 50.
• The published rules use equal 50-pip profit targets and stop losses for both directions.
• The strategy is specified for EUR/USD on the one-hour timeframe and calls for recalibration elsewhere.
• The document states backtest assumptions but gives no performance results.

Tags

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