EURUSD M30/D1 forex strategy using RSI and daily open price to identify short entries on pullbacks within downtrends. Employs dynamic lot sizing based on account balance percentage.
Strategy introduction
The design of this strategy is that you first imagine that there is a line drawn below the daily opening price. When the current price is lower than this line, it means that the major trend is downward. At this time, if the RSI is higher than a certain value, it means that it will be pulled back sharply in the short term, which is a good SELL entry point for the downward trend of the general trend. It use EURUSD/M30 as the main chart timframe and D1 as the subchart.
1.The 1.0 version of this strategy currently only has SELL entry transactions, because BUY entry transactions are not very good according to my backtest results, and they are still being tested.
2.This strategy is to change the order lot size by compound interest according to the remaining amount of the balance.
You can determine the lot size of an order by changing “percentRisk” which means that the ratio of this order divided by the account balance
The lotsize formula is : (Acountbalace*percentRisk*leverage)/(100,000*close price)
example:
Acountbalace=$1000
percentRisk=0.02 (This means that the ratio of this order divided by the account balance is 2%)
leverage=500 (My default leverage is 500, maybe you can modify the lotsize formula with the sqx file to match your leverage)
EURUSD=1.10000
=>lotsize=1000*0.02*500/100,000*1.1=0.09
3.I started from $1,000, and after 8 years of back-testing time(20142~2022.03) on MT5, it has become more than $400,000, and the total number of transactions is about 300. I hope you can help me see what needs to be improved, or if you have tested a more optimized parameter combination, you can share it with us.
I hope you can give me some advice. This strategy is estimated to take an average of more than a week to place an order, so it seems that the initial profit is relatively slow, and the future direction of improvement may be to try to increase the frequency of transactions.
Free
Files
Strategy-RSIpullback10.sqm5 KBLocked
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