RSI + Stochastic + WMA Strategy by RevoTheTrader
By RevoTheTrader
Performance Metrics
- Author: RevoTheTrader
- Symbol: FX:XAUUSD
- Timeframe: 1 hour
- Net P&L: −648.27 USD (−0.06%)
- Win Rate: 62.0%
- Profit Factor: 0.884
- Max Drawdown: 820.97 USD (0.08%)
- Total Trades: 586
- Sharpe Ratio: −21.705
Description
This script is designed for TradingView and serves as a trading strategy (not just a visual indicator). It's intended for backtesting, strategy optimization, or live trading signal generation using a combination of popular technical indicators.📊 Indicators Used in the Strategy:Indicator DescriptionRSI (Relative Strength Index) Measures momentum; identifies overbought (>70) or oversold ( 70Stochastic Crossover Downward → %K crosses below %DPrice is below WMA → Confirms downtrend direction👉 Interpretation: Market is overbought, momentum is turning down, and price confirms downtrend — bearish entry.🔄 Strategy Execution (Backtesting Logic):The script uses:pinescriptCopyEditstrategy.entry("LONG", strategy.long)strategy.entry("SHORT", strategy.short)These are Pine Script functions to place buy and sell orders automatically when the above conditions are met. This allows you to:Backtest the strategyMeasure win/loss ratio, drawdown, and profitabilityOptimize indicator settings using TradingView Strategy Tester📊 Visual Aids (Charts):Plots WMA Line: Orange line for trend directionOverbought/Oversold Zones: Horizontal lines at 70 (red) and 30 (green) for RSI visualization⚡ Strategy Type Summary:Category SettingStrategy Type Momentum Reversal + Trend FilterTimeframe Flexible (Works best on 1H, 4H, Daily)Trading Style Swing/IntradayRisk Profile Medium to High (due to momentum triggers)Uses Leverage Possible (adjust risk accordingly)