RSI and CCI Divergence Trading with Stops and Risk Controls

Summary

This document describes an automated trading system that seeks trades when price diverges from either the Relative Strength Index or Commodity Channel Index. It lists configurable indicator thresholds and a bar-count setting for waiting for a divergence, along with fast and slow moving-average parameters. Trade management options include stop loss, take profit, trailing stops, break-even settings, and limits on the number of concurrent trades. The system is described for multiple timeframes and major forex pairs and NASDAQ stocks.

Additional settings target account-level risk control, including equity stops, basket profit and loss thresholds, and optional lot increases after losing trades. The document does not define the divergence calculation, entry and exit conditions in sufficient detail, nor does it provide backtests, live results, or comparisons against simpler sizing. Some options can increase position size after losses, which changes exposure; their effects and the claimed drawdown controls are not substantiated here. The parameter list alone is not enough to assess robustness or suitability.

Key ideas

• The system triggers trades based on divergence involving RSI or CCI.
• Its settings include divergence lookback, moving averages, stops, targets, and trade-count limits.
• Optional controls include equity stops, basket thresholds, trailing management, and increasing lot size after losses.
• The document does not explain the full signal rules or provide evidence of trading performance.

Tags

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