RSI RFTL EA
This EA uses the RSI (Relative Strength Index) indicator combined with RFTL (Recursive Fast Trend Line) to generate trading signals. It enters long positions when RSI is oversold and the RFTL confirms an upward trend, and enters short positions when RSI is overbought and RFTL confirms a downward trend. The strategy aims to capture momentum reversals filtered by a trend-confirmation digital filter.
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 | -3.61% | -3.15% | 6.80% | 145 | 39.60% | -0.76 | -0.53 | 9 | −$2.74 | Reliable |
| GBPUSD | -3.37% | -2.94% | 7.64% | 145 | 44.40% | -0.53 | -0.44 | 7 | −$2.50 | Reliable |
| USDJPY | -0.60% | -0.52% | 6.59% | 145 | 57.60% | -0.07 | -0.09 | 5 | −$0.52 | Reliable |
| XAUUSD | -93.19% | -89.14% | 97.73% | 47 | 59.60% | -1.55 | -0.95 | 3 | −$198.28 | Account stopped out |
Profitable on 0 of 4 markets with reliable results.
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.
Against the other Momentum EAs with a reliable result on the same market: EURUSD: better than 25% of 68 · GBPUSD: better than 35% of 66 · USDJPY: better than 51% of 68 · XAUUSD: better than 24% of 75
Month by month
| Market | Months with a gain | Best month | Worst month |
|---|---|---|---|
| EURUSD | 62% | +1.83% 2026-04 | -2.35% 2026-09 |
| GBPUSD | 46% | +1.87% 2026-01 | -2.48% 2026-09 |
| USDJPY | 62% | +1.54% 2025-11 | -2.14% 2026-08 |
| XAUUSD | 15% | +22.42% 2026-01 | -94.23% 2026-02 |
From the backtest equity curve, sampled about every two days; only reliable results.
Blow-up risk: High
- Hit a stop-out in our backtest (equity below 10%) on XAUUSD
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 EA's strategy concept is based on a dual-confirmation mechanism combining RSI momentum reversal with RFTL trend direction filtering. Entry conditions are: go long when RSI is below the oversold threshold and RFTL value is positive (confirming uptrend), go short when RSI is above the overbought threshold and RFTL value is negative (confirming downtrend). Exit conditions typically include fixed take-profit and stop-loss levels, or closing positions when RSI returns to the neutral zone. Position sizing uses a fixed lot approach with no dynamic lot calculation or equity-based sizing. Money management relies on the user manually setting the lot size, lacking automatic risk-per-trade calculation. The overall strategy logic is clear but lacks adaptability to market volatility and spread considerations.
Strengths
- Dual-indicator confirmation reduces false signals; RSI and RFTL complement each other to improve signal reliability
- Strategy logic is simple and clear, easy to understand and optimize parameters
- RFTL as a digital filter effectively removes market noise and provides smooth trend identification
Weaknesses
- Fixed lot size lacks dynamic position management, unable to automatically adjust trade size based on account risk
- No spread filter mechanism included, which may cause unnecessary losses in high-spread environments
- RSI can produce persistent overbought/oversold signals in strong trending markets, leading to premature counter-trend entries
Possible improvements
- Add equity-percentage-based risk calculation for dynamic position sizing
- Add spread filter and session filter to avoid trading during high-spread and low-liquidity periods
Risk assessment
Overall risk: Medium
- Fixed lot size does not scale with account balance, potentially leading to overtrading or insufficient risk
- Lacks new bar check mechanism, may repeatedly open positions on the same bar
Evaluation scores
Parameters
| Parameter | Default | Description |
|---|---|---|
RSI_Period | 14 | RSI indicator period |
RSI_Oversold | 30 | RSI oversold threshold; consider long below this |
RSI_Overbought | 70 | RSI overbought threshold; consider short above this |
RFTL_Period | 63 | Recursive Fast Trend Line (RFTL) period |
LotSize | 0.1 | Fixed lot size per trade |
StopLoss | 500 | Stop loss in points |
TakeProfit | 1000 | Take profit in points |
Similar Momentum EAs
Backtests are historical simulations and do not guarantee future results. Not financial advice.