RSI Strategy With TP/SL - Lower TF

24 Nov

This Pine Script strategy integrates the Relative Strength Index (RSI) for trade signals with user-defined Take Profit (TP) and Stop Loss (SL) levels. It's designed for flexible application in different market conditions, offering long, short, or dual-direction trading.

Short Description
The strategy uses the RSI to identify overbought and oversold market conditions:

Buy signal: When RSI drops below the specified "Buy Level."
Sell signal: When RSI rises above the "Sell Level."
Additionally, it manages risk and profit targets with:

Take Profit (TP): Exits trades when the price reaches a percentage gain.
Stop Loss (SL): Exits trades to limit losses if the price falls by a certain percentage.
The strategy is versatile and includes options for visualizing performance, monthly profit/loss data, and detailed trade metrics.

How to Use
Set Parameters:

RSI Period: Default is 14. Adjust based on your analysis.
RSI Buy/Sell Levels:
Buy Level: Default is 40. Consider higher levels for conservative entries.
Sell Level: Default is 60. Lower this for earlier exits.
Take Profit (%): Set your profit target (default: 5%).
Stop Loss (%): Set your risk tolerance (default: 2%).
Trade Direction: Choose "Long Only," "Short Only," or "Both."
Interpret Signals:

Buy signals appear when RSI crosses below the buy threshold.
Sell signals appear when RSI crosses above the sell threshold.
Risk Management:

The strategy dynamically calculates TP and SL levels for each trade.
TP/SL is applied using the percentage input based on the entry price.
Monitor Performance:

Review trade statistics in the "Strategy Tester."
Use the monthly performance table to track P/L across months.
Customize Alerts:

Alerts for buy, sell, TP, and SL events can be used to automate notifications.
Key Features
Configurable RSI Settings: Adaptable to various market conditions.
Risk Management: Built-in TP and SL management.
Customizable Trade Direction: Tailored for long-only, short-only, or both directions.
Monthly P/L Table: Visualizes performance trends over time.
Alerts: Notifies when critical trade events occur.

Please do your own research before ase this to your real trading.