RSI Entries with Risk-Based Sizing and Configurable Stops

Summary

This Pine Script template combines RSI threshold signals with risk-based position sizing. It enters long when RSI crosses below the oversold level and short when RSI crosses above the overbought level, provided the current position allows that direction. RSI length and the two thresholds are configurable.

Before entry, the script calculates a stop using a fixed distance, ATR multiple, percentage, or tick count. It derives a take-profit price from the stop distance and a configurable reward multiple, then estimates quantity by dividing a chosen fraction of account equity by the stop distance adjusted for point value. The excerpt ends during the short-entry order, so it does not show how exits are submitted or fully establish the finished strategy behavior. No backtest results or performance evidence are provided; actual risk can also differ from the sizing estimate if fills, contract specifications, or execution conditions vary.

Key ideas

• RSI threshold crossings provide the long and short entry signals.
• Stop distance can be defined using fixed points, ATR, a percentage, or ticks.
• Position quantity is estimated from an equity risk budget and the stop distance.
• The take-profit distance is set as a multiple of the calculated stop distance.
• The available script excerpt is incomplete and provides no performance results.

Tags

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