Thread: Cost-effective strategy with RSI and EMA: simple and effective configuration

For those who still don�t understand the difference between crossing an EMA and being �above,� I recommend that they review the basic concepts. You can�t follow a strategy without understanding its basics. It�s not an obligation to be a technical expert, but you can understand how each signal is generated. Otherwise, you�ll be operating blindly, and that�s expensive in this business.

I incorporated the ADR indicator to better define my take profit targets. Since then, my ratios have improved tremendously. It�s key to know the middle range of the pair you�re operating. It doesn�t make sense to look for 80 pips in a pair that rarely moves more than 50 a day. Be realistic, not greedy.

I'm testing the strategy in cent accounts to scale safely. Logic is simple: better to train in real conditions but with minimal risk. Emotional behavior changes when real money is at stake. And yes, strategy responds well. Yes, emotional control remains the key. That part does not program any EA.

For Auto Trading fans: the strategy in its EA version cannot distinguish news, context, or avoid entry when the market is asleep. Don�t expect miracles. Manual intervention is still necessary. You can let the EA operate, but if you don�t have minimal supervision, you�ll pay the price.

Many ask me why I use RSI 21 and not 14. Because in my tests, the 21 best filters noise on H1 and H4. Does that mean that 14 does not work? No, but it requires higher visual filter. In short, the RSI 21 is slower but more reliable. And in my trading style, that weighs more than having faster but less effective signals.

A recommendation for those who do backtest: don�t do it with �ah eyes, here I would have entered.� Do it as if it were live, bar by bar. Only then will you know if you are able to follow the rules. What seems profitable in the past may not be if you don�t have the discipline to execute it the same in the present.

For those who want to swing, this strategy also fits well in H4 or even D1. Just adjust SL/TP accordingly. You don't intend to operate daily with 30 stop pips, that's suicide. In D1, SL from 70 to 120 pips is normal. If you're not mentally prepared for that, stay in minor temporalities.

I get a lot of doubts about the use of the JRC. If you are not familiar with it, you can only use RSI as a filter. But if you know how to interpret it, the JRC of 80 helps a lot to confirm momentum. In short: don�t see it as a mandatory thing, but as an extra ally. If it confuses you more than it helps you, you better get it out.

I am using this strategy combined with analysis of supply and demand zones. And honestly, the combo is brutal. The technical input is clear and the zone gives me context. It is not necessary to saturate indicators. Sometimes it is only enough to know where you are standing for the strategy to shine.

For those obsessed with perfection: there is no infallible strategy. If you are looking for one that never loses, I better get out of trading. This is a game of odds, not of certainties. This strategy has a high ratio of successes if applied well, but you are going to have negative streaks. I assume or dedicate yourself to something else. (Continue...