In this video I create a trading system that takes advantage of entries with the overall trend. Using the Relative Strength Index (RSI) and a new volume indicator that I never tested before called the Volume Positive Negative (VPN), I am able to create a trading system that was extremely profitable over a series of 100 consecutive trades. Please be advised that unlike many systems I have featured on Trader’s Landing this is more subjective than most due to the use of trendlines. However, the subjectivity is limited and it can be used by intermediate to advanced traders.
In addition to reviewing the indicators, providing exact entry rules, defining the take profit and stop loss levels, testing it for 100 consecutive setups, reviewing the results, discussing the equity curve, and scoring the system on a scale of 1 to 10, I also share my 6 optimization tips that you can try in your own trading system development. Do not neglect back and forward testing, that is critical.
⏱️ Timestamps ⏱️
00:00 - Start
00:37 - Indicators
01:53 - Examples
05:07 - Results, Equity Curve, Score
06:35 - Optimization
⚙️ System Specifics ⚙️
📛 System Name: RSI Bang-Out
🏆 Trader’s Landing Score: 8
🎹 Instrument: Euro vs. US Dollar (EUR/USD)
⌛ Time Frame: 5-Minute (M5)
👀 TradingView Indicators
Name: Exponential Moving Average (EMA)
Inputs: Length = 200
Style: White
By: TradingView Built-In
Link: https://www.tradingview.com/support/solutions/43000592270-exponential-moving-average/
Name: Relative Strength Index (RSI)
Inputs: Length = 9
Style: Yellow
By: TradingView Built-In
Link: https://www.tradingview.com/support/solutions/43000502338-relative-strength-index-rsi/
Name: Volume Positive Negative (VPN)
Inputs: Default
Style: Moving Average = Removed
By: JohnMuchow
Link: https://www.tradingview.com/script/jYSKZ6vd-Volume-Positive-Negative-VPN/
☝️ Long Entry
👇 Short Entry
🔥 Risk to Reward: 1:2
🛑 Where to place stop-loss:
For Longs: Above previous swing high.
For Shorts: Below previous swing low.
🚀 Where to take profits: 2 times risk.
⚠️Disclaimer: This content references opinion and is for information purposes only. Not intended to be investment advice.
