Noob coding advice RSI stop

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01/27/2022 at 1:49 PM #186725 quote

bob320
Participant

New

Hi Team,

Please be gentle with me, Im a complete noob and Im pretty sure my questions may be daft and basic. Anyway I`ve created a simple RSI strategy using the Simplified creation builder and applied it to the FTSE100 at 20min timeframe, on back-testing, it seems to turn a profit most of the time

However, back-testing further, there are certain dates like Feb / March 2020 where the market took a severe nose dive or October 2020 where there was a sharp upturn and I was wrong side and get stopped out. Is there a way I can prevent it from opening positions when the market is moving in one direction or another sharply?

Sorry if I sound like a complete noob.

Code looks like this, thanks in advance:

===================================================

DEFPARAM CumulateOrders = False // Cumulating positions deactivated

// Conditions to enter long positions
indicator1 = RSI[17](close)
c1 = (indicator1 CROSSES OVER 29)

IF c1 THEN
BUY 1 CONTRACT AT MARKET
ENDIF

// Conditions to exit long positions
indicator2 = RSI[17](close)
c2 = (indicator2 CROSSES OVER 70)

IF c2 THEN
SELL AT MARKET
ENDIF

// Conditions to enter short positions
indicator3 = RSI[17](close)
c3 = (indicator3 CROSSES UNDER 70)

IF c3 THEN
SELLSHORT 1 CONTRACT AT MARKET
ENDIF

// Conditions to exit short positions
indicator4 = RSI[17](close)
c4 = (indicator4 CROSSES UNDER 29)

IF c4 THEN
EXITSHORT AT MARKET
ENDIF

01/27/2022 at 6:29 PM #186753 quote
robertogozzi
Moderator

Legend
Yes, you can add two variables to enable, or disable, opening Long or Short trades by setting them to either 1 or 0. I named them GoLong and GoShort:
```
DEFPARAM CumulateOrders = False // Cumulating positions deactivated

GoLong  = 1      //0=disabled, 1=enabled
GoShort = 1      //0=disabled, 1=enabled

// Conditions to enter long positions
indicator1 = RSI[17](close)
c1 = (indicator1 CROSSES OVER 29)

IF c1 and GoLong THEN
BUY 1 CONTRACT AT MARKET
ENDIF

// Conditions to exit long positions
indicator2 = RSI[17](close)
c2 = (indicator2 CROSSES OVER 70)

IF c2 THEN
SELL AT MARKET
ENDIF

// Conditions to enter short positions
indicator3 = RSI[17](close)
c3 = (indicator3 CROSSES UNDER 70)

IF c3 and GoShort THEN
SELLSHORT 1 CONTRACT AT MARKET
ENDIF

// Conditions to exit short positions
indicator4 = RSI[17](close)
c4 = (indicator4 CROSSES UNDER 29)

IF c4 THEN
EXITSHORT AT MARKET
ENDIF
```
bob320 thanked this post
01/27/2022 at 7:38 PM #186773 quote
nonetheless
Participant

Master
I may be completely wrong, but I think what he’s looking for is more of a trend detection – another condition that will prevent his trade opening in the wrong direction, or will cut out if the trend moves sharply against him ???

for example
```
Timeframe (1 hour) 
ma = average[a,t](typicalprice)
cb1 = ma > ma[1] 
cs1 = ma < ma[1]
```
robertogozzi and bob320 thanked this post
01/28/2022 at 4:51 PM #186859 quote

bob320
Participant

New

Hi Guys,

Thank you so much for you time and responses, much appreciated. I understand I can use additional indicators to determine if I should open a position, I guess I`m wondering what specific indicators and values would prevent opening the trades on the dates where the markets fell or rose in a big way.

Maybe some code that says if the market has shifted +/- 2% since open, don`t trade?

Thanks Again
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