RSI Volume Strategy TreeFiddy by TradingChop
By TradingChop
Performance Metrics
- Author: TradingChop
- Symbol: CME_MINI:NQ1!
- Timeframe: 1 minute
- Net P&L: +8,020.00 USD (+0.80%)
- Win Rate: 39.3%
- Profit Factor: 1.052
- Max Drawdown: 9,235.00 USD (0.92%)
- Total Trades: 815
Description
RSI Volume Strategy TreeFiddyThe RSI Volume Strategy TreeFiddy is a momentum and confirmation-based trading strategy that combines RSI trend bias, candle sequencing, volume confirmation, and ATR directional filtering to identify higher-probability long and short setups.This strategy is designed to avoid low-quality entries by requiring multiple layers of confirmation before entering a trade.How It WorksRSI Trend ConfirmationThe strategy uses the Relative Strength Index (RSI) and an RSI Moving Average to establish directional bias:Bullish Bias: RSI is above its moving averageBearish Bias: RSI is below its moving averageThis helps align trades with momentum rather than taking reversal signals blindly.Candle Sequence LogicEntries are based on a structured 3-candle confirmation pattern:Long SetupA bearish/red candle appearsFollowed by a bullish/green candleA second bullish candle forms with increasing volumeShort SetupA bullish/green candle appearsFollowed by a bearish/red candleA second bearish candle forms with increasing volumeThis sequence attempts to identify momentum shifts supported by participation.Volume ConfirmationThe final entry candle must show higher volume than the previous candle, helping filter out weak moves and low-conviction price action.ATR Trend FilterThe strategy incorporates a custom ATR Trailing Direction Filter to align trades with prevailing market direction.Trades are only allowed when the ATR trend agrees with the setup:Long trades only when ATR trend is bullishShort trades only when ATR trend is bearishThis additional layer is designed to reduce counter-trend entries during strong directional moves.Risk ManagementThe strategy automatically calculates:Entry PriceStop Loss using recent swing highs/lowsTake Profit based on a configurable Risk/Reward ratioDefault risk/reward is set to 1.5:1, but can be adjusted in settings.Adjustable InputsUsers can customize:RSI LengthRSI Moving Average LengthRisk/Reward RatioATR Lookback PeriodATR MultiplierATR Smoothing Type (RMA, SMA, EMA, WMA)ATR Flip Method (Close or Wick)Body/Wick weighting for ATR calculationsBest Use CasesThis strategy tends to perform best in:Trending marketsMomentum-driven environmentsIntraday tradingFutures, stocks, crypto, and forex with healthy volumeAs with any strategy, optimization by asset and timeframe is recommended before live use.Disclaimer: This script is for educational and research purposes only and is not financial advice. Always forward test and manage risk appropriately.