RSI strategy optimization

hyena

Hello everybody.

I'm backtesting the RSI strategy and I would like to share a suggestion.

I noticed that, for strategy purpose, the bot opens a position ONLY when candle changes.
This means that, if you are trading with H1, it will opens position ONLY at 11:00 , 12:00 , 13:00 and so on.

On a side, this is good cause with candle change, you have a bigger solid signal.

On the other hand, most of time this is a poor strategy cause, waiting the candle to change....sometime you loose perfect entries (at 11:23 for example, you could easily enter with a super-solid entrance, if you see that the upper line is completely broken)

Could be possible to add an option to choose if to wait the candle, or just when it brakes the upper-downer line?

Thanks for your cooperation

https://clickalgo.com/relative-strength-index-robot

Mike

Hi, Hyena,

We could add an option to do the signal checks on bar (close of candle) or on Tick (every price change), so the user can choose how they want to signal to be checked, One thing I will state is that if the signal is checked on every price change or as soon as the RSI signal is fired it may show a fake signal, this is why we chose on the candle close for the strategy.

As soon as we have time we will review adding this feature.

hyena

In addition, could be VERY useful if the robot would open the position ONLY when there is "return" on the broken line.
As in the picture
Entering ONLY on the blue circle moment, not before.

I would advice all my students to use this bot, having that feature.

Hope you will take this in consideration.

Regards ;)

hyena

Dear support,

before buying the RSI strategy ROBOT, months ago, i saw your video

in which it says clearly that, the robot it's waiting the best entry time.

Best entry point is:

Not when the rsi drop below the 40 line, but when it was raising again.

or, not when the rsi went above the 70 line, but when it reversed.

Like showed on the video.

The problem is that, in my case, it's opening a position when the rsi line is still above 70, or still below 40. So basically, it's not waiting.

Settings are the default ones, apart disabling close on reverse.

H1 frame, EURUSD for example.

Don't know if it's clear from the pic, but it opened the position when the RSI was still above 70, and not waiting the reverse entry below 70.

Maybe, the feature isn't working in backtesting?

Thanks for your help!

Mike

Hi, Hyena,

You are correct, there is a discrepancy between the YouTube video tutorial and the trade rules of the cBot and product page, we have decided to update the cBot to match the trade rules in the video, please allow a few days for the update.

New Trade Rules

We will modify the system to use the new trade rules below.

Bullish Signal - open buy

RSI value drops below the lower threshold - 1st condition
RSI value rises above the lower threshold. - SIGNAL

Bearish Signal - open sell

RSI value rises above the upper threshold - 1st condition
RSI value drops below the upper threshold - SIGNAL

Closing Positions
Whenever an opposite signal occurs a trade will close.

OnBar & OnTick Calculations
We will also add an option to choose if the system uses a candle close on every price tick to check for signals.
Waiting for the candle to close is the best option as the price can cross a threshold line many times in a second giving false signals.

An update has just been published, details can be found here:

hyena

Appreciate this.

I will surely advice this bot to all my students.

Looking forward for the upgrade for further tests.

Regards and congratulation for your service

hyena

Appreciate a lot the option to wait the next candle, or open the position as the event occur (even if,it can be of course dangerous)

Thanks and good work

hyena

Dear support, firstly congrats for your prompt work on this.
I really appreciate and I'll be giving good feedback about clickalgo for sure :)

Regarding the upgrade, i assume that the system to have 1st condition and THEN signal, is auto-integrate in the bot, so i dont have to enable it.

Regarding the use candle-close, all perfect!

Congrats again for your hard work

Mike

@hyena#329

Yes, it's automated and needs both conditions to be true, run a backtest and you will see where the entry and exit points are. thank you for your feedback :-)

hyena

Dear support, bot works much better now thanks to your upgrade.

I'm here to give another advice that could make it even better.

Imagine to have upper threshold to 60. With the upgrade you already did, it will open a position ONLY when the trade will enter back on 60.

But since, the threshold is active since 60, would be great it the operation could be opened already to ANOTHER upper threshold value. For example 70.

So, if the trade goes above 60, and during route goes above 70 also, it will open a position also breaking the 70. So you can profit also the passage from 70 to 60. (in case of sell , ofc)

Do you think it's possible upgrade it like this?

This is just a suggestion ofc!

Thanks for your hard work