RSI Threshold Entries with Fixed Profit Targets and Stops
Summary
This script describes a reversal strategy using a 50-period RSI and fixed thresholds. It enters long when RSI crosses above 30 and short when RSI crosses below 38, provided the current time passes its trading-hours check. Each entry sets a take-profit limit 100 price units from the close and a stop 250 units away in the opposite direction. The RSI is also plotted for reference.
The document provides the strategy rules but no performance results, market specification, or risk-adjusted evaluation. Its time handling deserves scrutiny: it defines EST-to-UTC timestamps, yet the entry filter uses chart hour and minute directly, and the filter's combined conditions may not represent a clean start-to-end session. The fixed price distances may also behave differently across instruments and volatility regimes. The attached comment raises drawdown concerns, but supplies no data to assess them.
Key ideas
- Long entries occur when RSI crosses above the oversold threshold, while short entries occur when it crosses below the overbought threshold.
- The strategy uses a 50-period RSI with thresholds of 30 and 38.
- Each position has a fixed take-profit distance of 100 price units and a stop distance of 250.
- A time filter is intended to restrict entries to a specified daily window.
- The document provides no backtest results or instrument-specific assessment.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.