Larry Conners RSI. Implementation of strategy from the book by Linda Raschke
Not all successful traders hide their methods; moreover, some of them end their trading careers and actively begin training people, publishing books, and sometimes creating advisors for Forex trading.
One of these traders is Linda Raschke and Larry Coners, who published a book, a guide to technical analysis for beginners, “Exchange Secrets.”
In this article you will get acquainted with the advisor, which is written according to one of Larry Coners' strategies published in his book.
Larry Conners RSI is a trend trading robot, which is written on the basis of Larry Conners' strategy, which is based on two standard forex indicators, the moving average and the relative strength index.
The Larry Conners RSI advisor itself is multi-currency, so it can be used on absolutely all currency pairs, stocks, or indices, since trend movements are common to all.
The choice of time frame also directly depends on the trader himself, since the robot can be easily optimized for any time intervals, even pips on M1.
Installing the Larry Conners RSI advisor in MT5
Despite the fact that Larry Conners’ book is more than ten years old, the strategy robot appeared quite recently, namely in 2018.
Moreover, it is worth noting that the expert itself is distributed completely free of charge, and it is included in the MT5 developer library, which allows you to install it in two ways.
The first method, which is also the simplest, is through a library, while the second, more complex, is through a data catalog according to the standard scheme.
To install the advisor through the library, launch your MT5, and then move to the Tools panel, where you can find up-to-date information about open and closed transactions. Then go to the “library” tab and sort the list so that only advisors .
After you find the Larry Conners RSI in the list, download it using the additional menu as shown in the image below:
If installation via the library is unsuccessful, you can resort to the standard scheme.
To do this, go to the end of the article and download the robot file, and then place this file in the appropriate folder of the terminal data directory, in a folder called Expert. After installation, you must update the trading terminal in the “Navigator” panel or restart the trading terminal, otherwise Larry Conners RSI will not appear in the list.
To start trading, drag the name of the robot onto the chart of the selected currency pair. Larry Conners RSI Strategy.
Tinctures The Larry Conners RSI advisor is built on the simplest trend strategy, which intelligently combines moving averages and the relative strength index.
So, if the advisor fixes the price above the slow moving average, and the price leaves the oversold zone, a buy position is opened.
If the price is above the slow moving average and the RSI line leaves the oversold zone, a sell position is opened.
The advisor fixes a deal either by a stop order and profit, or when the price crosses a faster moving average.
So in the Lots line you can set the position volume with which the expert will open a deal when a new signal appears.
The Fast MA period and Slow MA period variables allow you to change the periods of the fast and slow moving average. In the RSI Period variable you can set the period for calculating the RSI indicator, while in the RSI Long Entry and RSI Short Entry variables you can set the levels of the RSI indicator, the intersection of which will allow the expert to implement buy and sell positions.
The Use Stop Loss and Use Take Profit variables allow you to enable or disable the functions of using take profit and stop orders, while the values themselves can be set in points in the Stop Loss and Take Profit lines.
Preliminary test and optimization
Since each currency pair has its own volatility and characteristic variations in price movement, before starting trading, it is necessary to optimize the stop order and profit values in the tester.
As an experiment, we optimized and tested the robot for 2017 on the hourly chart of the Euro/Dollar currency pair.
Result:
In conclusion, it is worth noting that the Larry Conners RSI advisor is a high-quality trend robot that does not use any risky money management model such as martingale and averaging, which makes it interesting for traders trading on a classic account.
Download Larry Conners RSI advisor