The RSI Trendline TRADER EA Input Tab

Below is a discussion and tips about the inputs required for the RSI Trendline EA. For more detailed information please consult the User Manual.

1. The first input is how far you want to EA to look back to find a trendline reference turning point. Bearing in mind that we are trading the markets momentum it might be an idea to limit this setting between 20 to 40 as momentum seems to become less valid after 40 bars.
2. The RSI period setting has a default of 4 - this is a good setting. Shorter settings of 2 and 3 will result in more transactions and possibly a smaller success rate. Settings higher than 4 will result in fewer trades and possibly a high success rate.
3. The RSI Overbought and Oversold levels. Make sure these add up to 100 otherwise you will introduce a sell or buy bias.
4. The RSI Trigger area. If the trendline crossover occurs outside of this area it will be disregarded. This is to avoid trend lines that are to steep. Make sure these add up to 100 otherwise you will introduce a sell or buy bias.
5. You can reverse the direction of trade if you wish - so sell signals with become buys signals and the other-way round.
6. No trades will be taken if the spreads are higher than stipulated. Make sure that this setting is reasonable when trading high spread exotic crosses. If you want to limit the number of open trades you can use this setting.
7. This allows different ways of position sizing. It might be an idea to start with the minimum manual lot sizing at first.
8. Initial stop loss size can be entered here. These values are sometimes determined by optimisation. When stops are larger than targets a higher success rate is likely to be experienced. These values will be overridden when following stops kick in.
9. Initial target can be entered here. These values are sometimes determined by optimisation. When targets are larger than stops a lower success rate is likely to be experienced.
10. Enter your break even stop values here
11. Enter your Following stop values here
12. Enter your dynamic stop values here.
13. You can limit the time of day when the EA will open new trades here
14. You can limit the days when the EA will open trades here.

If you are experiencing a low success rate consider the following

1. Change your currency - Try to find a more sideways trading currency
2. Change your time frame - some times the market trends on the 15 minute timeframe but is sideways on the 4 hour timeframe - generally you should move to higher timeframes.
3. Change the RSI setting to be higher e.g. from 4 to say 6
4. Change the overbought and oversold levels e.g. increase the levels from 20 / 80 to 10 / 90.
5. Change the trigger area - make it smaller e.g. decrease the levels from say 10 / 90 to 20 / 80
6. Change the stop loss to be higher from say 120 to 160
7. Change the targets to be smaller from say 150 to 100
8. Consider limiting the trading times to say the UK or US sessions only