Fractal RSI Entry Signals for an Expert Advisor

Summary

This document describes a simple automated strategy using a fractal RSI oscillator. It opens a short position when the oscillator crosses downward through an overbought threshold and opens a long position when it crosses upward through an oversold threshold. A signal is recognized at bar close, so the crossing must be present when the bar finishes.

The document mentions example trades and testing on AUD/USD hourly data for 2015, using the Expert Advisor's default inputs. It says the tests did not use stop loss or take profit, and notes that a library can support brokers with nonzero spreads and allow stop-loss and take-profit settings when opening positions. It gives no numerical performance results or enough detail to assess robustness, transaction costs, threshold choices, or behavior across other markets and periods. The examples therefore illustrate the rules but do not establish that the strategy is profitable or generalizable.

Key ideas

• The strategy uses a fractal RSI oscillator to generate entries.
• A downward crossing of the overbought level triggers a short entry.
• An upward crossing of the oversold level triggers a long entry.
• Signals are formed at the close of the bar where the crossing occurs.
• The described test uses AUD/USD hourly data from 2015 and omits stop loss and take profit.

Tags

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