1. Backtest an actual timeframe by date and time
2. Define the price source
3. Fully manipulate the length
4. Define a stop loss that works
5. Pick Long or Short, or both, based on market conditions. Or compare side by side to decide which you want.
1. This provides you with the visualizations of the Fast vs Slow EMA as background colors showing bear and bull conditions
2. It shows a Stochastic RSI overlay to give you a visual check of whether or not you are setting the oversold and overbought values in the wrong region
3. I used the EMA and OHLC to create a smooth candle for the price with the RSI overlaid on it so it is easier to see
4. I added risk management to it with target profit and stop loss
I tested the strategy today on MANA with $450 and it has yielded $109 in actual profit which is close enough to what the strategy shows for the time period I let it run in Short Only mode. When I tried adding trailing to the stop loss and take profit functions I received the re-drawing warning so I abandoned that. This is a solid strategy that pairs the three leading strategies to help you with setting it up.
Word of caution to anyone new to using strategies on bots, the RSI strategy is not a set it and forget it strategy. It requires tinkering on a daily basis with the crypto market. The date range can be set into the future to avoid any shedding of tears, I typically have it run through 5 am and then check on it when I wake up and adjust accordingly. It has not failed me yet in the previous iterations and this one just makes the adjustments take 5 minutes as opposed to 20 minutes.
2. Fixed the color of the RSI plot so it shows clearly
3. Added option to hide the Stochastic RSI background
4. Fixed the cross logic to maximize profits in entry and exit
The back test settings shown in this publication are for EOS on the week of 23 May through 30 May.
Chart Resolution = 30 minutes
Start Time = 24 May 2021 00:00
End Time = 31 December 2021 00:00
Trade Types = Long/Short
Stop Loss % = 2.27
Target Profit % = 12.18
RSI Length = 11
Source = Close
Overbought = 77
Oversold = 31
All other settings are default.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.