This tutorial shows how RSI Expert Advisor (EA) can be used on charts of MT4 to Trade in Options.
Strategy Premise
The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30. Signals can be generated by looking for divergences and failure swings. RSI can also be used to identify the general trend.
Button Functionality
When you click Buy button, it will send LE in Call and LX in Put. Sell button sends LE in Put and LX in Call.
For selecting ITM distance from current price. Example, say LTP = 11000,
Strike distance = 50; then CE strike =10950; PE strike= 11050
Strategy Logic
When RSI gives buy, it will send LE in Call and LX in Put.
And when RSI gives sell, it will send LE in Put and LX in Call.
MT4 Settings
To start Algo trading with RSI on MT4, simply follow the steps given below.
1: Make sure you have completed Jump Start setup
2: Download zipped files from here and extract them. You will find two sub-folders: Experts and Include. The files in these sub-folders should be copied in your MT4 directory in the same folders. In MT4 Click on File => Open Data Folder=> Click on MQL4 => Experts folder. Copy-paste the downloaded file to the Expert folder.
3: For include files, In MT4 Click on File => Open Data Folder=> Click on MQL4 => Include folder. Copy-paste the downloaded file to the Include folder.
4: In MT4 => Tools => Expert Advisor => Check all option available as shown below.
5: Go to navigator click on refresh to refresh indicator and expert advisor.
6: Now put RSI Expert Advisor on chart .
7: Change the Input Parameters as per your Requirement.
8: Now put the RSI Indicator on the chart and Change the Parameter as per the Inputs Set in EA.
Please note that the input parameters of EA and the indicator should be the same, or the signal generation will not match with the indicator.
Here are the Strategy Parameters
| Strategy tag | Use default STG1 unless trading in multiple strategies |
| Port | This should be same as API bridge port application will signal from same port |
| Base symbol | Put the base symbol example “BANKNIFTY” here in which you want to place an order |
| Expiry | Put contract expiry here |
| Order type | Select order type here from MARKET,LIMIT, SLL,SLM |
| Instrument | OPTIDX |
| RSI Period | Select rsi period here it should be same as the indicator |
| RSI Overbought Level | RSI Level for Overbought (default 70) |
| RSI Oversold level | RSI Level of oversold (Default 30) |
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