RSI 50-Level EURUSD Strategy with Fixed Stops and Take Profit

Summary

This expert advisor trades EURUSD on four-hour bars using a 14-period RSI threshold of 50. When RSI is below 50, it opens a short position and closes a long; when RSI rises above 50, it opens a long and closes a short. The listed parameters include a stop loss of 100, a take profit of 300, no trailing stop, and a specified slippage setting. The document provides a backtest report covering a stated period in 2013–2014, with 47 trades, a reported net gain, profit factor, and relative drawdown. It also reports that most trades were losses, while the average winning trade exceeded the average losing trade.

The results are historical simulation figures rather than evidence of future performance. The report uses an open-price-only modeling approach and gives no comparison against a benchmark, out-of-sample test, or sensitivity analysis. The high proportion of losing trades and the run of consecutive losses shown in the report are relevant when assessing whether the payoff profile and drawdown would be acceptable in practice.

Key ideas

• The strategy reverses direction when the 14-period RSI crosses the 50 threshold.
• It applies fixed stop-loss and take-profit settings and no trailing stop.
• The document reports a four-hour EURUSD backtest with 47 trades over a stated 2013–2014 period.
• Most trades lost, while the reported average winning trade was larger than the average losing trade.
• The simulation uses open-price-only modeling and does not provide out-of-sample validation.

Tags

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