Fractal-based Support/Resistance RSI Strategy

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Re: Fractal-based Support/Resistance RSI Strategy

Postby Leisure » Fri Apr 22, 2011 7:50 am

I have tested this strategy on different time compressions and with different "Price simulation" selections. I would agree with the previous writer that there are a lot of false signals when "Price simulation" "Mix" is selected. However, when "Close" is selected, as advised by Apprentice, the false signals are eliminated but a new problem becomes apparent. When "Close" is selected, the signal no longer happens at the close of the triggering candle but rather the close of the second candle following the candle which closed above the resistance line or closed below the support line.

Although seemingly minor in comparison when used on smaller time compressions, it can make a huge difference on larger time compressions. Not only will this result in a loss of some profit in most cases, but in some cases could be the difference between a losing trade and a winning trade.

In way of correcting this flaw?
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Re: Fractal-based Support/Resistance RSI Strategy

Postby TMos1124 » Thu Sep 08, 2011 11:43 am

Thank you for this strategy and indicator. I am not sure whether to request a new strategy, so I will post here. I would like to choose to trade above support or below resistance. In addition if it would be possible to also attach an MA, also to choose to trade above or below. Lastly, if a trading hours module could be attached, so I know when it will stop trading. My attempts to piece this all together in the Editor has proven futile. Many thanks again.
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Re: Fractal-based Support/Resistance RSI Strategy

Postby Apprentice » Thu Sep 08, 2011 12:17 pm

1st I am not sure what this means "the choice to trade above support or below resistance"

2nd You have not defined trading rules to the moving average.
Add moving average filter?

What requirements does this filter uses.
Slope or position of prices relative to the moving average.

3rd You want the opportunity to define trading hours.
Possibility of closing open positions after the expiration of this time.
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Re: Fractal-based Support/Resistance RSI Strategy

Postby TMos1124 » Fri Sep 09, 2011 8:23 am

Thank you for your reply, allow me to clarify:

1. As I think this FSBR strategy works, it will trigger only if price closes beyond the FSBR and I want to be able to choose to trade either if it closes above resistance or below support (pardon my confusion)
2. I want to define direction based on the prices position to the MA (long or short)
3. I want all trades to be closed at the end of the time period.

I hope that gives a better picture, I would be glad to explain further.
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Re: Fractal-based Support/Resistance RSI Strategy

Postby jackfx09 » Tue Sep 13, 2011 1:25 pm

I think that this strategy would be best utilized if you can offer a couple different filters/options:

First, I think the easiest change to be made would be to offer the strategy to sell against the resistance and buy against the support lines. "Reverse Signal" as I have seen on other parameter filters is most likely what I am speaking about.

Second, in conjunction with the above, if the price closes past the support and/or resistance lines by a certain percentage/pip threshold, then the autotrade would follow that trend until the opposing FBSR signal closes the position.

for example, price on a five minute bar closes 10 pips ABOVE the FB resistance, then the autotrader would open a buy and vice versa.
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Re: Fractal-based Support/Resistance RSI Strategy

Postby jackfx09 » Wed Sep 14, 2011 3:11 am

Notes for idea of tuning this particular strategy. Hope this helps.

Thanks!

sjc
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FBSR strategy notes.png
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Re: Fractal-based Support/Resistance RSI Strategy

Postby jackfx09 » Wed Sep 14, 2011 3:34 am

Part 2 of FBSR strategy notes for review and brainstorming. FBSR works best in Breakouts (current situation since Sept 2 of this year) while in a Trend, but can be utilized in a Range which you will see from this daily chart was the case from May through to Sept.
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FBSR strategy notes part 2.png
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Re: Fractal-based Support/Resistance RSI Strategy

Postby TMos1124 » Wed Sep 14, 2011 8:52 am

I agree with this poster, I asked for the changes for exactly this. My buy logic was for trending markets to initiate a buy if price closes above resistance while above a moving average, and sell logic of if price closes below support while below the moving average. I wanted to keep these somewhat independent so I could adjust for ranging markets (sell at close above resistance OR below support while above the moving average, and buying below support OR above resistance below the moving average).
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Re: Fractal-based Support/Resistance RSI Strategy

Postby RJH501 » Tue Sep 20, 2011 9:19 am

In my testing of the FBSR strategy I have discovered that the RSI overbought/oversold parameters have no affect on how the strategy trades. You can set the OB/OS parameters to any value between 2 & 100 with all other parameters stable and there will be no changes in the trade point.

Just for your follow-up.

Regards,

Richard
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Re: Fractal-based Support/Resistance RSI Strategy

Postby mosesnobleraj » Wed Oct 05, 2011 10:02 pm

sir,
can u add following option in this strategy

buying condition: rsi{period 14}>central line and rsi {period 14}<ob level[70] and price crossover fbsr resistance
sell ing condition:rsi{period 14}<central line and rsi {period14}> os level[30] price cross under fbsr resistance
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