Is it profitable to buy at RSI 30 and sell at 70? Verification report
Hello today!
I am Satori, researching FX.
From among oscillators that are commonly said to be profitably contrarian indicators, I simply tested whether buying at RSI 30 and selling at 70 would be profitable.
Weekly Research FX Fibonacci Trade Idea Verification Video Classroom, excerpt from issue dated August 6, 2017.
http://fxmt4indicator.abproducts.biz/wp/?page_id=1760
[From the Verification of Trade Ideas]
Since I received a lot of questions like “Would buying at RSI 30 and selling at 70 be profitable?”, I conducted a verification.
Using USDJPY 15-minute chart with take-profit 20 pips and stop-loss 50 pips, this is the data.
Data covers four and a half years since January 2013.
The figure above shows the equity curve for buying at RSI 30 and selling at 70 on USDJPY 15-minute chart without considering the trend for four and a half years. Win rate is 67%, but the number of trades is high and the equity curve declines to the right.
The figure below shows the test results when trend judgment was used for trading.
The above figure shows the equity curve for buying at RSI 30 and selling at 70 on USDJPY 15-minute chart for four and a half years using a trend. Win rate is 81%, the number of trades is low, and because a trend is used, entries/exits are made at quite precise timing.
The left side of the red vertical line corresponds to a period where there was an optimal, so-called navigator for buys/sells aligned with past markets; the right side is a forward-looking period that was created to fit the market rather than as actual data, so it should be viewed as nearly real data.
During the forward period of 1 year 7 months, the equity curve remained nearly upward.
Note: In this video classroom, we introduce EMA trend settings that combine 4-hour and 15-minute charts.
The figure below shows an example of a long (buy) using the trend.
The figure below shows an example of a short (sell) using the trend.
Note: URLs for the EA and indicators used in the trade idea verification.
Trade Rule Creation Support Tool MT4 RSIMA Breakthrough EA
http://fxmt4indicator.abproducts.biz/wp/?page_id=122
Trend-following Breakout Buy Indicator MT4 RSIMA Breakthrough
http://fxmt4indicator.abproducts.biz/wp/?page_id=9
The upward-sloping setting on the right side of the figure is included in the free version upgrade of both the Breakthrough EA and Breakthrough Indicator as part of the product bundle.
To summarize today's verification results:
Would buying at RSI 30 and selling at 70 be profitable?
The answer is, “Not by itself.”
So how can you profit? By identifying the trend and trading in the direction of the trend.
For the settings that include the so-called forward period with a rising trend, we introduce them with MT4 reports in the video from Weekly Research FX Fibonacci Trade Idea Verification Video Classroom dated August 6, 2017.
http://fxmt4indicator.abproducts.biz/wp/?page_id=1760
As you verify using new indicators or EAs and change perspectives, you accumulate various data. We will incorporate these into future product updates and new product development as well.
Until similar data accumulates from various angles, we will continue developing new products.
We also provide free downloads of GIF images used on the blog and MT4 test reports to the extent possible.
This set also includes the images from this article.
Free downloads of blog images, MT4 reports, etc.
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