Exp_TDI-2_ReOpen
This EA is based on the Traders Dynamic Index (TDI-2) indicator, which combines RSI, Bollinger Bands, and a signal line to identify overbought/oversold conditions and trend direction. It features a ReOpen mechanism that allows re-entering positions after a stop-loss hit if the signal persists, aiming to capture mean-reversion trades within trending contexts. The EA systematically enters trades when RSI crosses key TDI levels and manages exits via take-profit and stop-loss.
Open the interactive view (equity curve, symbol switch)Key facts
Backtest results (H1, about 1 year)
Not backtested yet — this EA could not be converted automatically.
Strategy analysis
The core strategy concept is based on the TDI-2 indicator, a composite indicator that embeds RSI within Bollinger Bands and adds a signal line to simultaneously assess trend direction and overbought/oversold conditions. Entry conditions trigger when RSI reverts from outside the Bollinger Band boundaries — RSI crossing below the upper band is a sell signal, while RSI crossing above the lower band is a buy signal, fundamentally a mean-reversion approach. Exit conditions include fixed take-profit and stop-loss levels, along with a ReOpen mechanism: when a stop-loss is hit, if the TDI signal remains valid, the EA re-enters the position to capture the reversion move. Position sizing can use fixed lots or account-equity-based sizing depending on parameter configuration. Money management is a concern because the ReOpen mechanism can lead to accumulated consecutive losses, especially in choppy markets where repeated stop-loss hits followed by re-entries amplify drawdowns. The strategy performs best during mean-reversion phases within trending markets but may suffer significant drawdowns in strong trending markets due to counter-trend trading and repeated re-entries after stop-outs.
Strengths
- TDI-2 combines multiple market dimensions (RSI momentum, Bollinger volatility, and signal line trend), providing more comprehensive analysis than standalone RSI or Bollinger Bands
- The ReOpen mechanism effectively captures secondary reversion opportunities after stop-outs in genuine mean-reversion scenarios, improving risk-reward ratio
- Strategy logic is clear and parameters are intuitive and easy to understand, making it accessible for traders to optimize
Weaknesses
- The ReOpen mechanism can cause repeated re-entries after consecutive stop-losses in choppy markets, leading to accumulated losses and deteriorating equity curves
- Mean-reversion strategies are inherently counter-trend, suffering sustained losses in strong directional markets where ReOpen amplifies the damage
- Lacks trading session filters and spread filters, potentially executing unfavorable fills during low-liquidity or high-spread periods
Possible improvements
- Add a maximum ReOpen count limit and cooldown period to prevent unlimited re-entries during unfavorable market conditions
- Implement trading session and spread filters to avoid opening positions during low liquidity or excessively wide spread periods
Risk assessment
Overall risk: Caution
- The ReOpen mechanism can lead to over-trading and rapid capital depletion during consecutive losing streaks
- Counter-trend mean-reversion trading lacks natural protection mechanisms during strong trends
Evaluation scores
Parameters
| Parameter | Default | Description |
|---|---|---|
RSI_Period | 13 | RSI calculation period |
BB_Period | 34 | Bollinger Bands calculation period |
BB_Deviation | 1.6185 | Bollinger Bands standard deviation multiplier |
Signal_Period | 2 | Signal line smoothing period |
TakeProfit | 0 | Take profit in points; close on cumulative profit |
StopLoss | 0 | Stop loss in points, 0 to disable |
ReOpen | true | Reopen position after stop loss |
Lots | 0.1 | Fixed trading lot size |
MagicNumber | 0 | Magic number; 0 to manage all orders |
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Backtests are historical simulations and do not guarantee future results. Not financial advice.