RSI and Awesome : Advanced Strategy

RSI and Awesome : Advanced Strategy is a classic momentum strategy.

Time Frame 30 min or higher.

Currency pairs: EUR/UDS, USD/CHF, GBP/USD, GP/JPY, NZD/USD, ADU/USD.

Forex Indicators:

RSI 14 period close.

Awesome ( default).

To get maximum safety out of this system, add RSI indicator. Default settings, levels: 40 – 60 .

RSI confirmation signal:

When RSI is ABOVE 60 = Enter Buy if Awsome above zero level.

When RSI is BELOW 40 = Enter Sell if Awesome below zero line.

Intraday Rules for money management,

EURUSD, 3% risk level, $10,000 account size. Well, let us assume that you want to trade EURUSD and that your account size is $10,000. First of all you need to define how much risk you want to take very time you enter a trade. For example, let’s say you want to take a risk level of 3% per trade ($300 per trade). Ok, after entering the market we place a stoploss at the last/nearest support/resistance level (let’s say 30 pips) in order to cut possible losses short. That means the maximum loss we may suffer is 30 pips.

Now, it is about to calculate the leverage we will use according to the defined risk level of 3%:

“Lot Size” x 0.0030 pips = $300 › “Lot Size” =

$100,000 = 1 lot › $10,000: $100,000 = 1: 10

That means that you will use a leverage of 1: 10 by trading 1 lot EURUSD.

Examples.