The Winning Trading Strategy: Stochastic RSI
Introduction
The trading strategy I’m about to show you in this video has one of the highest win ratios on my channel. It is very easy to use, works extremely well on the Euro US dollar pair, and most importantly, it makes money. Okay, enough talk, let’s get straight into it.
Understanding Stochastic RSI
The strategy is based on the stochastic RSI, a technical analysis indicator that helps identify overbought and oversold conditions in the market. It combines the concepts of the stochastic oscillator and the relative strength index to provide more sensitive and accurate trading signals.
When the stochastic RSI goes above the upper threshold of 80, the security is considered overbought, indicating a potential sell signal or opportunity to short the asset. When the stochastic RSI goes below 20, the security is viewed as oversold, indicating a buy signal or the potential to go long on the asset.
The indicator consists of two lines, K and D. A buy signal occurs when the K line crosses above the D line, and vice versa for a sell signal. To maximize signal accuracy, one way to adjust the indicator settings is to set both the RSI and stochastic lengths to 10.
Completing the Setup
In addition to the stochastic RSI, two more trading view tools need to be added to complete the setup. The Signal moving average by Lux algo and Heatmap volume indicators help confirm the signals given by the stochastic RSI. Adjusting the settings and input values will ensure the accuracy of the signals.
Rules for Entering Trades
For a sell trade entry, the stochastic RSI must first reach the overbought condition. Once it goes above 80, a bearish cross must occur, followed by confirmation from the other indicators. The price position against the moving average and the market volume must also be considered before placing a sell order.
For a buy trade entry, the stochastic RSI must reach the oversold condition, with a bullish cross below 20. The price position below the signal moving average and high market volume are additional criteria for entering a long trade.
Testing and Performance Metrics
To determine the performance of the strategy, it can be manually back-tested or coded in a pine editor and tested using the strategy tester. The results for the Euro US Dollar, Pound Dollar, and Aussie US Dollar pairs show impressive win ratios, profit factors, and minimal drawdowns.
By adjusting the sensitivity of the strategy in the code, traders can fine-tune the signals and improve the quality of the trades. Overall, the stochastic RSI trading strategy offers a high win ratio, profit potential, and minimal drawdown on selected time frames.
Conclusion
In conclusion, the stochastic RSI trading strategy provides traders with a reliable and effective method for identifying overbought and oversold conditions in the market. By following the set rules and criteria for entering trades, traders can maximize their chances of success and profitability.
Give this strategy a try on the recommended time frames and pairs, and don’t forget to share your results and feedback. Happy trading!
Can I get a link to the indicator please…
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Working for crypto? by the way what is the best video at yours channel for crypto futures?
Thx
can somebody please help me! when i select a 2 hour chart and the strategy shows a profit, does that mean it takes 6 months to see such profits? example, 1 day = 1minute, 5 days = 5 minutes, 1 hr = 3 month, 2 hr = 6 month.. is this correct? My strategy shows a open trade on a 2hr chart, open for nearly 22 hours!
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Your videos come across very well. So I'm surprised to see the obviously fake positive comments on the video. It hurts your credibility. What's the point?
Zane Omar is dedicated to giving his clients passive income and financial stability. He understands that investing in day trading and crypto trading can be risky, but he mitigates these risks by implementing strategies that aim to generate consistent returns over time. His commitment to helping his clients achieve financial stability sets him apart from other traders in the industry. God bless you sir
Does the script automate the trades?
What platform are you trading off of
thanks for not working, outdated script and bot comments, fking blender
I cant find the script
Its not 10000 dollars i checked it was just 286$
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Thank you for the demonstration and the educational approach. Would it be possible to get the Trading View script used in this video, please? I'am very much interest in investing in the Forex Market through a bot and through my personal knowledge and experience.
Can you make one for the stocks?
What broker do you use??
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💯 Nice video and thank you for breaking it down!! Even the current dip, I'm still glad 😊 I smile back at my portfolio of $66,700 made from my weekly trade within a short period investing with Mrs Jasmin Adele.
algo is no longer available as indicator, can you reupload?
Lots of fake and obviously paid-for comments on here…
What was the question that you asked Chat-gpt to generate your pine script code. Maybe not exactly but can you point us in the correct direction. ???
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I cant find these indicators on tradingview. Does it need a special paid account or somethinG?
I wish someone could be my mentor all this trading stuff is kind of a lot to take all in at once..
So sorry your comment section is filled with scammers and shit. I really enjoy this strategy. Thanks for sharing!!!!!!!!!
What page should I use to set the indicators because I don't have most of them on binance?
There are many ways to earn money in the crypto market. And why don't you try gaming? THE MERA game with many attractive features to have fun and earn is waiting for you!
tested and not good at all
I lost almost 7000 dollar in Forex market,i may watch your strategy carefully ,thanks
Your video was interesting, thank you for taking the time to make it.
The backtesting go back all away to 2004. I feel that is not really a good representation. If I backtest to last 5 years, the Net Profit is virtual 0%… 🙁
I love that you emphasize the importance of risk management in forex trading. It's a crucial aspect that often gets overlooked.
Trading with an experienced and licensed broker such as Mr Logan has helped me recover my losses through investments and has improved my life
can you do a video on how to use auto-gpt to create market maker, trading strategies to backtest, excute trade ,etc.
Hi, adding Buy and Sell alert will be an added value of this indicator
do u have one for crypto market?
Do you think you can get a binary option strategy made? Considering there are a lot of third party brokers, the strategy will not have problem scaling.
Some of those drawdowns are outrageous! Definitely needs serious improvement.
Video content suggestion:
Try showing strategies that you benchmark the results against typical prop firm requirements.
The main things to show would be:
1. Did it grow the account by more than 10% in 30 days
2. Was the daily drawdown less than 5%
3. Was the total drawdown less than 10%
If it meets those criteria then it's a potential strategy for a funded account trial.
You could list all the strategies that passed prop requirements on a google sheet, people can then try/test the one they like based on win rate, drawdown, timeframe, instrument used etc.
Hello bro first thank you for all your amazing work
Just a simple question, could you update your spreadsheet pls ?
Could you do a video on how to link different broker accounts to trading view to make the script act as a trading bit strategy. I work really long days and struggle to find time to trade but I still have an interest. And I love your videos. Thanks heaps.
why your script is always version 4
Why don't all YouTubers enter fees into the backtesting parameters? Do you trade without paying trading fees? 🙁
When you put the buy order there was a buy signal before that. Why didn't you enter there 4:32
Thanks!
My god man! … excited to try this out. The Lorentzian thing is doing a fine job but always good to have more tables in the casino.
[Edit] Signals do look really quite decent across a fair few symbols (but not all). Thanks so much for this kind of concrete output!!