Stochastic RSI Trading Strategy

This strategy trades based on crossover signals from the Stochastic RSI indicator.

The specific entry rules are:

• Enter long when Stochastic RSI crosses above 30

• Enter short when Stochastic RSI crosses below 70

Additional entry filters:

• Longs require 9-period SMA above 21-period SMA

• Shorts require 9-period SMA below 21-period SMA

• Longs only below VWAP, shorts only above VWAP

The strategy uses stop loss and take profit for risk management:

• Stop loss set at 20 ticks for both longs and shorts

• Take profit set at 25 ticks for both longs and shorts

The key advantage is using Stochastic RSI to identify overbought/oversold regions combined with SMA and VWAP filters to reduce false signals. However, this strategy works better in trending rather than range-bound markets.