The core idea of this strategy is to combine the RSI indicator and custom AI conditions to discover trading opportunities. It will establish long or short positions when multiple conditions are met, and use fixed take profit and stop loss levels.
The strategy is implemented through the following steps:
Additionally, the strategy will generate alerts on signal creation and plot RSI values on the chart.
The strategy has several key advantages:
There are also some risks to consider:
These can be mitigated by tuning RSI parameters, optimizing AI logic, relaxing stop loss distances, etc.
Some ways the strategy can be further improved:
In summary, this is a highly configurable and optimizable advanced strategy for trading based on RSI and custom AI logic. It determines trend direction through a combination of multiple signal sources, executes trades with risk management and take profit/stop loss procedures. The strategy can provide good trading performance for users, with abundant expansion and optimization capabilities.
/*backtest start: 2022-12-28 00:00:00 end: 2024-01-03 00:00:00 period: 1d basePeriod: 1h exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}] */ //@version=5 strategy("Improved RSI Scalping Strategy", overlay=true) // Parameters rsiLength = input.int(14, title="RSI Length") rsiOverbought = input.int(70, title="RSI Overbought Threshold") rsiOversold = input.int(30, title="RSI Oversold Threshold") takeProfitPips = input.int(10, title="Take Profit (Pips)") stopLossPips = input.int(5, title="Stop Loss (Pips)") riskPercentage = input.float(1, title="Risk Percentage", minval=0, maxval=100, step=0.1) // Calculate RSI rsiValue = ta.rsi(close, rsiLength) // Custom AI Conditions aiCondition1Long = ta.crossover(rsiValue, 50) aiCondition1Short = ta.crossunder(rsiValue, 50) // Add more AI conditions here var aiCondition2Long = ta.crossover(rsiValue, 30) var aiCondition2Short = ta.crossunder(rsiValue, 70) // Combine AI conditions with RSI longCondition = aiCondition1Long or aiCondition2Long or ta.crossover(rsiValue, rsiOversold) shortCondition = aiCondition1Short or aiCondition2Short or ta.crossunder(rsiValue, rsiOverbought) // Calculate position size based on risk percentage equity = strategy.equity riskAmount = (equity * riskPercentage) / 100 positionSize = riskAmount / (stopLossPips * syminfo.mintick) // Calculate Take Profit and Stop Loss levels takeProfitLevel = close + takeProfitPips * syminfo.mintick stopLossLevel = close - stopLossPips * syminfo.mintick // Long entry strategy.entry("Long Entry", strategy.long, when=longCondition[1] and not longCondition, qty=1) strategy.exit("Take Profit/Stop Loss", from_entry="Long Entry", limit=takeProfitLevel, stop=stopLossLevel) // Short entry strategy.entry("Short Entry", strategy.short, when=shortCondition[1] and not shortCondition, qty=1) strategy.exit("Take Profit/Stop Loss", from_entry="Short Entry", limit=takeProfitLevel, stop=stopLossLevel) // Alerts alertcondition(longCondition, title="Long Entry Signal", message="Long Entry Signal") alertcondition(shortCondition, title="Short Entry Signal", message="Short Entry Signal") // Plot RSI on the chart plot(rsiValue, title="RSI", color=color.blue)