This strategy trading system implements a 30 Simple Moving Average
(SMA) and the Relative Strength Index (RSI). The strategy has no
restrictions in terms of trading days or hours. It opens orders if
certain conditions are accomplished throughout the week. To open a buy
order, the following conditions need to be satisfied: the Last Bid
Candle Close price above the 30 SMA price and the RSI higher than 25.
To open a sell order, the following conditions need to be satisfied:
the Last Bid Candle Close price below the 30 SMA price and the RSI
lower than 75. The strategy trades EUR/USD with a default trade amount
of 4.9M, default slippage of 5 pips, default stop loss of 400 pips and
default take profit of 10 pips. The default trading period is fifteen
minutes (15 min) for both the 30 SMA and the RSI. During the month May
the strategy opened only buy orders. This has been an effect of the
euro being traded with a heavier bias against the US dollar. The
single currency managed to rise from nearly the 1.0850 level at the
beginning of the month to nearly the 1.1250 level at the end of the
month. Macron’s election in France coupled with weaker US
fundamental data and growing views that the Eurozone turned the corner
prompted the euro to jump in May. So, for this purpose, I present two
charts, were it can be seen that: from May the 1st to May the 8th, the
30 SMA has been most of the time below the last candle level; from May
the 9th May to May the 11th, the EURUSD eased and the 30 SMA moved
most of the time above the last candle level; from May the 12th till
the end of the month, the euro rose significantly against the US
dollar, with the 30 SMA moving most of the time below the last candle
level, which generated a buy signal coupled with the RSI level above
25. I’ve started the strategy on May the 12th, the precise moment
when the EUR/USD started trending higher. And given my stop loss level
of 400 pips, it allowed the strategy to stretch losses without giving
up the settled position, holding for the next wave up.