Trading XAUUSD Reversals with Multi-Timeframe RSI Thresholds

Summary

This XAUUSD strategy uses RSI calculated on a selectable timeframe to open long positions below a lower threshold and short positions above an upper threshold. It permits only one open position at a time and allows long and short trades to be enabled independently. Position quantity is derived from a configurable lot size and ounces per lot.

The system converts fixed dollar take-profit and stop-loss amounts into price distances using the selected trade quantity, then places both exit levels around the average entry price. Its script also includes chart markers, plotted entry and exit levels, and a performance table. The document gives implementation rules and example defaults, but no backtest results or analysis demonstrating effectiveness. RSI thresholds can remain active during persistent trends, and fixed dollar exits do not adapt to changing volatility; results also depend on timeframe, sizing assumptions, costs, and execution.

Key ideas

• RSI on a selectable timeframe triggers longs below a lower threshold and shorts above an upper threshold.
• The strategy allows only one position at a time and can disable either trade direction.
• Trade quantity is calculated from lot size and the assumed ounces per lot.
• Fixed dollar profit and loss limits are converted into price movements based on position quantity.
• The document provides code and configurable defaults but no evidence of backtest performance.

Tags

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