Fibonacci + RSI - Strategy by hacky1610_1
By hacky1610_1
Performance Metrics
- Author: hacky1610_1
- Symbol: PEPPERSTONE:EURJPY
- Timeframe: 5 minutes
- Net P&L: +300.68 USD (+3.02%)
- Win Rate: 90.3%
- Profit Factor: 2.762
- Max Drawdown: 47.68 USD (0.48%)
- Total Trades: 93
Description
OverviewThis is an intraday mean-reversion strategy designed for short timeframes (1–30 minutes).It combines volatility-based Fibonacci bands with RSI momentum signals to identify temporary price extremes and trade pullbacks back toward fair value.The strategy trades both long and short, uses limit entries, a manual exit logic, and a hard stop-loss as risk protection.Market ContextThe strategy assumes that, on intraday timeframes:price frequently deviates from its short-term fair value,extreme deviations tend to revert,momentum (RSI) can confirm exhaustion.It is not a trend-following system.Trades are taken against short-term extremes, not in the direction of breakouts.Indicators Used1. Fibonacci Volatility BandsThe bands are calculated using:VWMA (Volume Weighted Moving Average) as the central price,Standard Deviation as a volatility measure,a multiplier to create upper and lower bands.Key levels:Upper Band (fu1) – overextended price zoneLower Band (fd1) – oversold price zoneIntermediate targets (fu764 / fd764) – mean-reversion profit targetsThese bands behave similarly to dynamic volatility channels.2. RSI (Relative Strength Index)RSI length: typically 14Oversold level: 30Overbought level: 70The strategy uses RSI crossovers to confirm momentum reversal:crossing up from oversold → potential longcrossing down from overbought → potential shortEntry RulesLong EntryA long position is considered when:Price trades below the lower Fibonacci band (fd1)RSI crosses upward from the oversold levelPrice is still below the predefined upside targetThe trade is entered using a limit order at the candle close.Short EntryA short position is considered when:Price trades above the upper Fibonacci band (fu1)RSI crosses downward from the overbought levelPrice is still above the predefined downside targetThe trade is entered using a limit order at the candle close.Exit RulesManual Exit (Primary Exit)Positions are closed manually when price reaches predefined Fibonacci target levels:Long: price moves back up into the target zoneShort: price moves back down into the target zoneThis exit represents the mean-reversion objective of the strategy.Stop-Loss (Risk Protection)A hard stop-loss is always active to protect against adverse moves.Long stop: below entry priceShort stop: above entry priceThe stop is calculated as a fixed percentage (or ATR-based in later versions) from the entry price.The stop-loss is not the primary exit, but a safety mechanism.Order Management PhilosophyLimit entries are used to avoid market slippage.Manual exits control trade logic.Stop-loss exits control risk only.Only one position per direction is managed at a time.Alerts are generated at signal or entry time for automation or monitoring.Risk & CharacteristicsDesigned for frequent, small tradesLow average drawdown per tradePerformance depends heavily on:volatility regimecorrect stop sizingdisciplined risk managementWithout proper position sizing, the strategy must not be traded live.Suitable MarketsForex pairsIndicesLiquid crypto pairsBest performance is expected in ranging or mildly trending markets.SummaryThis strategy attempts to exploit short-term price overextensions by combining volatility bands with momentum confirmation.It relies on mean reversion, controlled risk, and disciplined execution rather than large directional moves.