7-RSI strategy

The 7-RSI strategy indicator is a multi-timeframe grid trading tool designed to identify entry points based on the alignment of Relative Strength Index (RSI) values across up to seven different periods. It facilitates automated grid bot logic by placing a series of limit orders once specific oversold or overbought conditions are met across multiple timeframes simultaneously.

Usage

The Usage section describes how the script can be used to manage grid-based trades. Users can select between "Long Bot" or "Short Bot" modes to align with their market bias. When the RSI values on all active timeframes fall below the user-defined "Low" thresholds (for longs) or rise above the "Up" thresholds (for shorts), the strategy triggers a primary entry and a series of 19 additional safety grid orders.

Examples of usage include:

• Trend Following: Setting long-term RSI timeframes (e.g., 1D, 4H) to filter entries in the direction of the macro trend.
• Mean Reversion: Using shorter timeframes to capture local pullbacks within a grid range.
• Safety Orders: The script automatically calculates a grid of 20 total orders based on the "Step orders (%)" setting, allowing for cost-averaging during price drawdowns.

Details

This strategy utilizes request.security to fetch RSI data from different timeframes, ensuring that the decision-making process accounts for both micro and macro market momentum. The grid mechanism is programmed to execute limit orders at fixed percentage intervals from the initial trigger price. A unified take-profit level is calculated based on the average position price, which is visually represented on the chart by circles. This allows the strategy to exit the entire accumulated position once the specified profit percentage is reached.

Settings

General

• Source RSI/Bot: Determines the price source used for RSI calculations and grid placement.
• Bot period: The timeframe used for executing the grid bot logic.
• Trade Direction: Switches between "Long Bot" and "Short Bot" execution modes.

Indicators

• RSI-1 to RSI-7 period: Defines the specific timeframe for each of the seven RSI instances.
• RSI-1 to RSI-7 Length: Sets the lookback period for the RSI calculation (default is 14).

Long Bot / Short Bot

• Take Profit (%): The target percentage gain based on the average position price.
• Step orders (%): The percentage distance between each of the 20 grid orders.
• RSI < / RSI >: The threshold levels for each timeframe. For an entry to trigger, the RSI on that timeframe must be lower than (for long) or higher than (for short) this value.

FAQ

How do I use only 3 RSI indicators instead of 7?

By default, unused RSI thresholds are set to 100 (for Long) or 0 (for Short). Since the RSI value will almost always be less than 100 or greater than 0, these filters effectively become "always true," allowing you to focus on only the timeframes you have modified.

How are the grid orders calculated?

Once the entry condition is met, the script places one market/limit order at the current price and 19 additional limit orders below (for longs) or above (for shorts) the current price, separated by the "Step orders (%)" value.

How can I access this script?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.