RSI Expert Advisor: Trading Oversold and Overbought Crossings

Summary

This note describes a basic Expert Advisor that trades RSI threshold crossings on bar close. It sells when the oscillator crosses downward through an overbought level and buys when it crosses upward through an oversold level. The signal therefore depends on the completed bar confirming a crossing, rather than on an intrabar move. The document identifies the EA as originally written in MQL4 and gives GBPUSD on a four-hour chart as the setting for reported testing in 2015.

The tests used the default input parameters and did not use stop-loss or take-profit orders. The supplied text refers to chart examples and a testing-results chart, but contains no numerical performance figures, so the strategy’s profitability and risk cannot be assessed from this description. It also mentions a library for handling nonzero spreads and attaching protective orders, though those options were not part of the stated tests. Results from one currency pair, timeframe, and test year would not establish general performance.

Key ideas

• The EA sells on a bar-close downward crossing of an RSI overbought level.
• It buys on a bar-close upward crossing of an RSI oversold level.
• The described test setting is GBPUSD on a four-hour chart in 2015, using default parameters.
• Stop-loss and take-profit orders were not used in the reported tests.
• The supplied text gives no numerical results with which to assess performance.

Tags

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