StochRSI + MA Strategy [Kintsugi Trading]

22 May 2022

What is the StochRSI + MA Strategy?

This premium indicator was inspired by my desire to find and place high probability forex trades in any market, direction, or time of day.

Why Forex?

The Forex markets operate 24 hours, 5.5 days a week
Access to meaningful leverage
Ability to easily trade long or short
High liquidity

How to use it!

----- First, start by choosing a Stop-Loss Strategy, Stop PIP Size, and Risk/Reward Ratio -----

- Stop-Loss Strategy

• ATR Trail (No set Target Profit, only uses ATR Stop)
  
• ATR Trail-Stop (Has set Target Profit, however, stop is based on ATR inputs)
  
• Fixed PIP Size
  **If you choose an ATR Stop-Loss Strategy - input the desired ATR period and Multiple you would like the stop to be calculated at**
  **ATR Stop-Loss Strategies have a unique alert setup for Auto-Trading. See Auto-Trading Section**
  
  - Stop PIP Size = How many PIPs will be representative of the max risk. i.e. - if you are risking $100 and you set the PIP stop to 10, that means 10 PIPs = $100.
  - Risk/Reward Ratio = If you have a .5 risk/reward, it means you are risking $100 to make $50.
  
  

----- Next, we set the Session Filter. -----

Set the Timezone and Trade Session you desire. If no specific session is desired, simply set the Trade Session to 00:00 - 00:00.




----- Next, we set the Moving Average Cloud. -----

Enter the Moving Average Type:

• Simple Moving Average
  
• Exponential Moving Average
  
• Hull Moving Average
  
• Weighted Moving Average
  
• Smoothed Moving Average
  
• Double Exponential Moving Average
  
• Triple Exponential Moving Average
  

Enter the fast, medium, and slow Moving Average Period you would like the Strategy to use. If you would like like to use (2) Moving Averages, simply set two of the Periods the same.
These inputs will determine whether the strategy looks for Long or Short positions.

**Boxes on the left of the fast, medium, and slow Moving Average Periods**
If you check any of these boxes, the strategy will ignore and set up where the price is trading below the checked moving average.



----- Next, we set the Stochastic RSI Parameters. -----

In combination with the Moving Average Cloud, the Stochastic RSI will help us determine when to take a trade and in what direction.
The strategy is essentially looking for small reversals going against the overall trend and placing a trade once that reversal ends and the price moves back in the direction of the overall trend.
The Stochastic RSI + MA Strategy utilizes confirmation between extreme RSI calculations and the overall trend as measured by (3) separate Moving Averages.

The Stochastic RSI is completely customizable by:

• Long Entry Bar Cross Below
  
• Short Entry Bar Cross Above
  
• K
  
• D
  
• RSI Length
  
• Stochastic Length
  
• RSI Source
  

----- Finally, we backtest our ideas. -----

After using the 'Strategy Tester' tab on TradingView to thoroughly backtest your predictions you are ready to take it to the next level - Automated Trading!
This was my whole reason for creating the script. If you work a full-time job, live in a time zone that is hard to trade, or just don't have the patience, this will be a game-changer for you as it was for me.

Auto-Trading

When it comes to auto-trading this strategy I have included two options in the script that utilize the alert messages generated by TradingView.
*Note: Please trade on a demo account until you feel comfortable enough to use real money, and then please stick to 1%-2% of your total account value in risk per trade.*

AutoView
PineConnector




**ATR Auto-Trading Alert Setup**

How to create alerts on Stoch+MA Strategy

For Trailing Stops:
1) Adjust autoview/pineconnector settings
2) Click "add alert"
3) Select "Condition" = Strategy Name
4) Select "Order Fills Only" from the drop-down
3) Remove template message text from "message" box and place exact text. {{strategy.order.alert_message}}
4) Click "create"


For Fixed Pip Stop:
1) Adjust autoview/pineconnector settings
2) Click "add alert"
3) Select "Condition" = Strategy Name
4) Select "alert() function calls only"
5) I like to title my Alert Name the same thing I named it as an Indicator Template to keep track

Good luck with your trading!