Noro’s Fast Scalping RSI Switching Strategy is a quantitative trading strategy that identifies overbought and oversold opportunities using the RSI indicator. The strategy also incorporates candlestick patterns, moving average filters and stop loss methods to control risk.
The key components of this strategy include:
Noro’s Fast Scalping RSI Switching Strategy mainly identifies the following trading signals:
Fast RSI Overbought/Oversold Signals: Trade signals are generated when fast RSI crosses above its upper limit or below its lower limit.
Candlestick Signals: Candlestick parameters like body size and direction are used to determine trend and supplement fast RSI signals.
SMA Filter Signals: SMA direction filters out false breakout signals.
Stop Loss Signals: Positions are closed when fast RSI crosses back above its upper limit or below its lower limit.
Specifially, this strategy identifies trading opportunities based on the overbought and oversold zones of the fast RSI. The fast RSI crossing below its lower limit signals an oversold condition; while crossing above its upper limit signals an overbought condition.
To avoid noise, the following supplementary conditions are added:
Therefore, this strategy combines fast RSI, candlesticks, moving average and stop loss together to generate trading signals.
The advantages of this strategy include:
There are also some risks to consider:
The following optimization methods can help mitigate risks:
Some ways to further optimize this strategy include:
By incorporating profit taking, risk management, parameter optimization, machine learning and robustness testing, the strategy can be significantly enhanced in stability.
In summary, Noro’s Fast Scalping RSI Switching Strategy combines the fast RSI indicator with supplementary candlestick analysis to identify overbought and oversold trading opportunities. With quick signal response times, ease of optimization and incorporated stop loss modules, this short-term trading strategy has strong potential to generate positive results after further machine learning and parameter tuning.
/*backtest start: 2023-12-14 00:00:00 end: 2023-12-18 00:00:00 period: 15m basePeriod: 5m exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}] */ //Noro //2018 //@version=2 strategy(title = "Noro's Fast RSI Strategy v1.7", shorttitle = "Fast RSI str 1.7", overlay = true) //Settings needlong = input(true, defval = true, title = "Long") needshort = input(true, defval = true, title = "Short") usemar = input(false, defval = false, title = "Use Martingale") capital = input(100, defval = 100, minval = 1, maxval = 10000, title = "Capital, %") usersi = input(true, defval = true, title = "Use Fast RSI Strategy") usemm = input(true, defval = true, title = "Use Min/Max Strategy") usebc = input(true, defval = true, title = "Use BarColor Strategy") usesma = input(false, defval = false, title = "Use SMA Filter") smaperiod = input(20, defval = 20, minval = 2, maxval = 1000, title = "SMA Filter Period") fast = input(7, defval = 7, minval = 2, maxval = 50, title = "Fast RSI Period") limit = input(30, defval = 30, minval = 1, maxval = 100, title = "RSI limit") rsisrc = input(close, defval = close, title = "RSI Price") rsibars = input(1, defval = 1, minval = 1, maxval = 20, title = "RSI Bars") mmbars = input(1, defval = 1, minval = 1, maxval = 5, title = "Min/Max Bars") showsma = input(false, defval = false, title = "Show SMA Filter") showarr = input(false, defval = false, title = "Show Arrows") fromyear = input(2018, defval = 2018, minval = 1900, maxval = 2100, title = "From Year") toyear = input(2100, defval = 2100, minval = 1900, maxval = 2100, title = "To Year") frommonth = input(01, defval = 01, minval = 01, maxval = 12, title = "From Month") tomonth = input(12, defval = 12, minval = 01, maxval = 12, title = "To Month") fromday = input(01, defval = 01, minval = 01, maxval = 31, title = "From day") today = input(31, defval = 31, minval = 01, maxval = 31, title = "To day") //Fast RSI fastup = rma(max(change(rsisrc), 0), fast) fastdown = rma(-min(change(rsisrc), 0), fast) fastrsi = fastdown == 0 ? 100 : fastup == 0 ? 0 : 100 - (100 / (1 + fastup / fastdown)) //Limits bar = close > open ? 1 : close < open ? -1 : 0 uplimit = 100 - limit dnlimit = limit //RSI Bars upsignal = fastrsi > uplimit ? 1 : 0 dnsignal = fastrsi < dnlimit ? 1 : 0 uprsi = sma(upsignal, rsibars) == 1 dnrsi = sma(dnsignal, rsibars) == 1 //Body body = abs(close - open) abody = sma(body, 10) //MinMax Bars min = min(close, open) max = max(close, open) minsignal = min < min[1] and bar == -1 and bar[1] == -1 ? 1 : 0 maxsignal = max > max[1] and bar == 1 and bar[1] == 1 ? 1 : 0 mins = sma(minsignal, mmbars) == 1 maxs = sma(maxsignal, mmbars) == 1 //SMA Filter sma = sma(close, smaperiod) colorsma = showsma ? blue : na plot(sma, color = colorsma, linewidth = 3) //Signals up1 = bar == -1 and (strategy.position_size == 0 or close < strategy.position_avg_price) and dnrsi and body > abody / 5 and usersi dn1 = bar == 1 and (strategy.position_size == 0 or close > strategy.position_avg_price) and uprsi and body > abody / 5 and usersi up2 = mins and (close > sma or usesma == false) and fastrsi < 70 and usemm dn2 = maxs and (close < sma or usesma == false) and fastrsi > 30 and usemm up3 = sma(bar, 2) == -1 and usebc dn3 = sma(bar, 2) == 1 and usebc exit = (((strategy.position_size > 0 and fastrsi > dnlimit and bar == 1) or (strategy.position_size < 0 and fastrsi < uplimit and bar == -1)) and body > abody / 2) //Arrows col = exit ? black : up1 or dn1 ? blue : up2 or dn2 ? red : na needup = up1 or up2 needdn = dn1 or dn2 needexitup = exit and strategy.position_size < 0 needexitdn = exit and strategy.position_size > 0 plotarrow(showarr and needup ? 1 : na, colorup = blue, colordown = blue, transp = 0) plotarrow(showarr and needdn ? -1 : na, colorup = blue, colordown = blue, transp = 0) plotarrow(showarr and needexitup ? 1 : na, colorup = black, colordown = black, transp = 0) plotarrow(showarr and needexitdn ? -1 : na, colorup = black, colordown = black, transp = 0) //Trading profit = exit ? ((strategy.position_size > 0 and close > strategy.position_avg_price) or (strategy.position_size < 0 and close < strategy.position_avg_price)) ? 1 : -1 : profit[1] mult = usemar ? exit ? profit == -1 ? mult[1] * 2 : 1 : mult[1] : 1 lot = strategy.position_size == 0 ? strategy.equity / close * capital / 100 * mult : lot[1] if up1 or up2 or up3 if strategy.position_size < 0 strategy.close_all() strategy.entry("Long", strategy.long, needlong == false ? 0 : lot) if dn1 or dn2 or dn3 if strategy.position_size > 0 strategy.close_all() strategy.entry("Short", strategy.short, needshort == false ? 0 : lot) if time > timestamp(toyear, tomonth, today, 23, 59) or exit strategy.close_all()template: strategy.tpl:40:21: executing "strategy.tpl" at <.api.GetStrategyListByName>: wrong number of args for GetStrategyListByName: want 7 got 6