Larry Conners RSI: Implementing the Strategy from Linda Raschke's Book
Not all successful traders hide their methods; in fact, some of them end their trading careers and actively begin training people, publishing books, and sometimes even creating advisors for Forex trading.
Among such traders are Linda Raschke and Larry Conners, who published a guide to technical analysis for beginners, "Market Secrets."
In this article, you'll learn about an expert advisor based on one of Larry Conners' strategies, as published in his book.
Larry Conners RSI is a trend-following trading robot based on Larry Conners' strategy, which is based on two standard forex indicators: the moving average and the relative strength index.
The Larry Conners RSI Expert Advisor itself is multi-currency, so it can be used on absolutely any currency pair, stock, or index, as trend movements are common to all.
The choice of time frame also directly depends on the trader, as the robot can be easily optimized for any time interval, even scalping on M1.
Installing the Larry Conners RSI Expert Advisor in MT5:
Although Larry Conners' book is over ten years old, the strategy robot was released quite recently, in 2018.
Furthermore, it's worth noting that the expert advisor itself is completely free and is included in the MT5 developer library, allowing you to install it in two ways.
The first, and easiest, method is through the library, while the second, more complex, method is through the standard data catalog. To install the advisor through the library, launch your MT5 and then go to the
Tools panel, where you can find up-to-date information on open and closed trades. Then, go to the "Library" tab and sort the list to display only advisors .
Once you find Larry Conners RSI in the list, download it using the additional menu, as shown in the image below:
If installation via the library was unsuccessful, you can use the standard method. To do this, scroll to the end of the article and download the robot file, then place it in the appropriate folder in the terminal data directory, in a folder named "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 robot name onto the chart of the selected currency pair.
Larry Conners RSI Strategy. Settings.
The Larry Conners RSI advisor is based on a simple trend-following strategy that skillfully combines moving averages and the relative strength index.
Thus, 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 remains above the slow moving average, and the RSI line leaves the oversold zone, a sell position is opened. The advisor closes the trade either by a stop order and profit, or when the price crosses a faster moving average.
In the Lots line, you can set the position volume with which the expert will open a trade 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 averages.
In the RSI Period variable, you can set the RSI indicator calculation period, while in the RSI Long Entry and RSI Short Entry variables, you can set the RSI indicator levels whose intersection will allow the expert to execute buy and sell positions.
The Use Stop Loss and Use Take Profit variables enable or disable the use of take profit and stop orders, while the values themselves can be specified in points in the Stop Loss and Take Profit lines.
Preliminary testing and optimization:
Since each currency pair has its own volatility and characteristic price movement variations, it is necessary to optimize the stop order and profit values in the tester before starting trading.
As an experiment, we optimized and tested the robot for 2017 on an hourly chart of the EUR/USD currency pair. Result:
In conclusion, it's worth noting that the Larry Conners RSI advisor is a high-quality trend-following robot that doesn't use any risky money management models like martingale or averaging, making it attractive for traders using a classic account.
Download the Larry Conners RSI advisor.
