MNQ Stochastic RSI Strategy with EMA Entries and Session Risk Controls

Summary

This strategy trades Micro E-mini Nasdaq futures in both directions using smoothed Stochastic RSI and a 20-period EMA. For shorts, an extreme high oscillator reading arms a setup; price must then touch the EMA before the oscillator falls through an entry threshold. Longs use the opposite sequence: an extreme low reading arms the setup, price touches the EMA, and the oscillator recovers through its entry threshold. The strategy exits at further oscillator thresholds or through trailing stops and a fixed dollar stop converted into points for the stated contract size.

It also prevents new entries during a specified evening session gap, closes open positions shortly before the daily break, and reopens in the saved direction at the session restart. The script states its assumed capital, contract quantity, commission, stop amount, and indicator defaults, but supplies no reported performance analysis. The title calls it a two-hour strategy, yet the code does not enforce a chart timeframe, so results depend on the timeframe used and on execution assumptions around session boundaries and stops.

Key ideas

• Stochastic RSI extremes arm long and short setups, while an EMA touch is required before entry.
• Oscillator thresholds govern entry confirmation and discretionary exits for each direction.
• Trailing stops and a fixed dollar stop provide additional exit controls.
• The strategy closes positions near the daily session break and may reopen in the prior direction.
• The script states cost and sizing assumptions but does not provide performance evidence or enforce its named chart timeframe.

Tags

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