RSI Dual Cloud EA
This EA uses dual RSI indicators with different periods to create a cloud-like envelope, trading mean reversion signals when price extremes align with RSI overbought/oversold zones. It enters buy positions when the faster RSI crosses above the slower RSI in oversold territory and sell positions when the faster RSI crosses below the slower RSI in overbought territory.
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 | — | — | — | — | — | Not convertible yet |
| GBPUSD | 0.00% | 0.00% | 0.00% | 0 | — | — | — | — | — | Not convertible yet |
| USDJPY | 0.00% | 0.00% | 0.00% | 0 | — | — | — | — | — | Not convertible yet |
| XAUUSD | 0.00% | 0.00% | 0.00% | 0 | — | — | — | — | — | Not convertible yet |
Why this EA never traded: no entry rule survived the conversion.
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
- Has no stop loss or trailing stop
On its own this is not a typical blow-up pattern, 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 core strategy of this EA is a dual RSI cloud mean reversion system that uses two RSI indicators with different periods (e.g., short period 7 and long period 21) to construct a cloud-like zone for judging market overbought and oversold conditions. For entry conditions, the buy signal requires the fast RSI to cross above the slow RSI from the oversold zone, indicating that short-term momentum is beginning to reverse upward; the sell signal is the opposite, requiring the fast RSI to cross below the slow RSI from the overbought zone. Exit conditions typically include closing positions when RSI returns to neutral territory or when the two RSI lines cross again. Position sizing uses either fixed lots or dynamic lot calculation based on account balance. Money management incorporates stop loss and take profit parameters to control the risk-reward ratio of each trade, but the stop loss range may not be flexible enough to adapt to different market volatility environments. The overall strategy logic is clear, but it lacks a filter for market trend states, which may generate unfavorable counter-trend trading signals during strong trending markets.
Strengths
- The dual RSI cloud design provides more robust overbought/oversold judgment, reducing false signals from a single RSI
- Mean reversion logic performs well in ranging markets with solid theoretical foundation
- Strategy parameters are concise and intuitive, making it easy for users to understand and optimize
Weaknesses
- Lacks a trend filter, which can lead to unfavorable counter-trend trades during strong trending markets
- Fixed stop loss and take profit in points cannot adapt to varying market volatility, potentially causing frequent stop outs during high volatility periods
- Does not include spread filter or trading session filter, may open positions under unfavorable conditions
Possible improvements
- Add a trend filter (e.g., ADX or long-period moving average) to suspend counter-trend signals during trending markets
- Introduce ATR-based dynamic stop loss and take profit to automatically adjust risk parameters based on market volatility
Risk assessment
Overall risk: Medium
- Mean reversion strategy carries the risk of sustained counter-trend trading during trending markets
- Fixed stop loss cannot adapt to market volatility changes, potentially leading to slippage or improperly sized stops
Evaluation scores
Parameters
| Parameter | Default | Description |
|---|---|---|
RSI_Period_Fast | 7 | Fast RSI period parameter |
RSI_Period_Slow | 21 | Slow RSI period parameter |
RSI_Overbought | 70 | RSI overbought threshold |
RSI_Oversold | 30 | RSI oversold threshold |
StopLoss | 500 | Stop loss in points |
TakeProfit | 500 | Take profit in points |
LotSize | 0.1 | Lot size per order |
MagicNumber | 39497 | Unique EA magic number identifier |
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Backtests are historical simulations and do not guarantee future results. Not financial advice.