OPEN-SOURCE SCRIPT
RSI, EMA, SMA Trendtrading - Oil Daytrading 1H
The Unitrend trading System produces trading recommendations on a pure Trend basis.
It is a Score based system.
--- How to use the System --
Simply adjust your capital you want to risk per trade and your TP Factor.
The TP Factor is the multiple of your risked Capital, also known as Risk/Reward ratio.
Furthermore you can toggle between a always Buy mode, to see if the System is better then market.
Compounding mode helps you to get a better understanding of your maximum drawdown with a total equity based approach.
--- How are Signals produced? ---
A score of 2 or 3 is a BUY signal.
You can count the score by looking at the lines above 1, or by reading the color.
Green is 3, yellow 2, orange 1 and red is 0.
The score is calculated by 3 conditions.
Each applying condition yields one point for the score.
The score resets each bar.
The rules are:
RSI > 45: Well known indicator, usually looks for reversal points but seems to produce above average results when above 45.
EMA(RSI) > SMA(RSI): My approach to momentum detection for the RSI movement, I consider a faster growing RSI as a good thing.
EMA(close) > SMA(close): My approach to trend detection for the market movement. Common Wisdom would be a fast SMA > slow SMA which I found to be too slow for the modern market.
It is a Score based system.
--- How to use the System --
Simply adjust your capital you want to risk per trade and your TP Factor.
The TP Factor is the multiple of your risked Capital, also known as Risk/Reward ratio.
Furthermore you can toggle between a always Buy mode, to see if the System is better then market.
Compounding mode helps you to get a better understanding of your maximum drawdown with a total equity based approach.
--- How are Signals produced? ---
A score of 2 or 3 is a BUY signal.
You can count the score by looking at the lines above 1, or by reading the color.
Green is 3, yellow 2, orange 1 and red is 0.
The score is calculated by 3 conditions.
Each applying condition yields one point for the score.
The score resets each bar.
The rules are:
RSI > 45: Well known indicator, usually looks for reversal points but seems to produce above average results when above 45.
EMA(RSI) > SMA(RSI): My approach to momentum detection for the RSI movement, I consider a faster growing RSI as a good thing.
EMA(close) > SMA(close): My approach to trend detection for the market movement. Common Wisdom would be a fast SMA > slow SMA which I found to be too slow for the modern market.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
Disclaimer
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