Trade on qualified RSI
This EA trades based on RSI signals that are qualified by additional conditions, entering long positions when RSI indicates oversold conditions and short positions when RSI indicates overbought conditions, with qualifying filters to avoid false signals. It systematically opens and closes positions based on these refined RSI extremes, aiming to capture mean-reversion moves in the market.
Open the interactive view (equity curve, symbol switch)Key facts
Backtest results (H1, about 1 year)
| Symbol | P&L | Annual | Max DD | Trades | Win rate | Sharpe | Recovery | Losing streak | Per trade | Status |
|---|---|---|---|---|---|---|---|---|---|---|
| EURUSD | 0.00% | 0.00% | 0.00% | 0 | — | — | — | — | — | Conversion problem |
| GBPUSD | 0.00% | 0.00% | 0.00% | 0 | — | — | — | — | — | Conversion problem |
| USDJPY | 0.00% | 0.00% | 0.00% | 0 | — | — | — | — | — | Conversion problem |
| XAUUSD | 0.00% | 0.00% | 0.00% | 0 | — | — | — | — | — | Conversion problem |
Why this EA never traded: two entry conditions contradict each other.
Converted from MQL5 to Python and run with the same rules for every EA. Positions use MT5 lot sizes (100,000 units per FX lot, 100 oz per gold lot) with 1:100 leverage, one order at a time, and a stop-out below 10% of the starting balance. Sharpe is computed from the equity curve. Results marked as unreliable are shown for completeness only.
Blow-up risk: No blow-up pattern found
None of the usual blow-up patterns were found in the code, and the account was not stopped out in our backtests. That is not a guarantee: any EA can lose money.
High: stopped out in our backtest, or martingale/grid sizing without a stop loss. Elevated: martingale or grid sizing with a stop loss, or several positions at once without a stop loss. What the label means and what we found →
Strategy analysis
The strategy concept is based on the classic RSI overbought/oversold mean reversion logic, enhanced with 'qualified' filtering conditions to improve signal quality. Entry conditions: go long when RSI drops below the oversold threshold and additional qualifying filters are met; go short when RSI rises above the overbought threshold and qualifying filters are met. Exit conditions likely include RSI returning to neutral zones, fixed take-profit/stop-loss levels, or the appearance of a reversal signal. Position sizing supports fixed lot trading and may include dynamic position calculation based on account balance. Money management utilizes stop-loss and take-profit parameters to control the risk-reward ratio of each trade, though the conservatism depends on parameter configuration. Overall, the strategy attempts to capture mean-reversion opportunities at RSI extremes, with qualifying filters designed to reduce the common risk of counter-trend trades found in plain RSI overbought/oversold strategies.
Strengths
- Uses RSI extreme filtering strategy with statistical edge under mean reversion framework
- Qualified filtering conditions reduce false signals compared to plain RSI overbought/oversold strategies
- Flexible parameterized design allows users to adjust RSI thresholds and risk control parameters for different market conditions
Weaknesses
- Mean reversion strategies are prone to consecutive counter-trend losses in strong trending markets
- If stop-loss is set to 0 or too wide, single trade risk can be extremely high
- RSI as a single indicator lacks multi-dimensional confirmation; filter strength depends on specific implementation
Possible improvements
- Add a trend filter (e.g., moving average direction) to avoid counter-trend entries during strong trends
- Implement dynamic position sizing with percentage-based risk control instead of fixed lot trading
Risk assessment
Overall risk: Medium
- Default stop-loss value of 0 may lead to unlimited risk exposure
- Mean reversion strategy carries risk of consecutive counter-trend losses in one-directional markets
- Lack of new bar check may cause duplicate position openings on the same signal
Evaluation scores
Parameters
| Parameter | Default | Description |
|---|---|---|
RSI_Period | 14 | RSI indicator period |
RSI_Overbought | 70 | RSI overbought threshold |
RSI_Oversold | 30 | RSI oversold threshold |
LotSize | 0.1 | Fixed trading lot size |
StopLoss | 0 | Stop loss in points, limits max loss per trade |
TakeProfit | 0 | Take profit in points, locks profit target per trade |
Timeframe | 0 | RSI timeframe, 0 for current chart period |
MagicNumber | 0 | Magic number for closing, 0 for all positions |
Similar Mean Reversion EAs
Backtests are historical simulations and do not guarantee future results. Not financial advice.