RSI LiDo Trading System For MT4

RSI LiDo Trading System For MT4

Table Of Contents:

  1. RSI LiDo Trading System For MT4
  2. RSI lido forex trading strategy – Long positions
  3. RSI lido forex trading strategy – Short positions
  4. Is the RSI lido forex trading strategy good for you?


Please note: This strategy was publicly published in the trading community and is free to use. We do NOT make an attempt to decide if this strategy is profitable or not, because we know that the major factors regarding trading results are the skills/experience of the trader who executes the strategy. Therefore, we are mainly explaining the components and rules of the strategy. If applicable, we are highlighting advantages, disadvantages and possible improvements of the strategy.


The RSI LiDo Trading System For MT4 is a trend following trading strategy. This trading system is suited for the 1 hour chart but it can also be used on the higher time frames such as daily chart time frame as well. The RSI lido forex trading strategy makes use of just a few indicators. This makes the charts relatively clean and easy to understand.

FREE RSI LiDo Trading System

Download the FREE RSI LiDo Trading System for MT4.

To receive my email 100% sure: 
Put my email on your whitelist!


The main indicators that are in use in the RSI lido forex trading system are two moving averages. The main moving average is a 200 period hull moving average, while the second moving average is a regular type. These two moving averages create the buy and sell signals on the chart.

However, beware that these moving averages are lagging in nature. Therefore, you need to apply some discretion as signals can emerge even before the moving averages cross over each other.

On the price chart, we also have the Fibopivot indicator. This indicator plots the daily pivot levels but using the Fibonacci method of calculation. The Fibo pivot indicator plots only a few days history and therefore you will find it only for the past few days. The pivot levels of course change at the start of a new trading day.

Finally, we have the RSI lido indicator. As the name suggests, this is a modified version of the RSI indicator. It plots the values on the sub window on your MT4 terminal. The default setting used here is just 5 period RSI. But you could change these values to experiment with a RSI setting that is more suitable for you.

The RSI lido plots dots on the oscillator and the indicator makes use of two levels. The overbought level is identified when the RSI is at or above the 65 – 75 level and oversold levels are when the RSI is at or below the 35 – 25 level. Let’s now take a look at how you can trade using the RSI lido forex trading system.

RSI lido forex trading strategy – Long positions




For long positions using the RSI lido forex trading strategy, we begin with looking at the price chart. Ideally, we need to see evidence of a bullish crossover of the two moving averages. But as we mentioned, the moving averages can lag quite a bit. Therefore, alternately, we need to see price forming a bottom. You can also look at bullish candlestick patterns that might form near the bottom.

Following this, we now look to the RSI lido indicator itself. We need to see the RSI rising from the oversold levels. At times, you might also see the RSI making a sharp turn within the 35 - 25 level of the RSI oscillator. This will suggest that the relative strength in price is turning higher.

Once you have the above condition met, the next step is to open a long position in the market. Wait for the current candlestick to close and following this, you can then go long in the market. You should set your stop loss level to the recent pivot low that has formed. In case of strong bullish candlesticks that emerge, you can also set the stop loss to the candlestick's low.

You can continue to hold on to the position by following the RSI oscillator. As long as the RSI does not fall back into the oversold area, you can continue on with the long position. Move your stop loss to break even under such circumstances.

Alternately, you can also make use of the fixed risk to reward ratio and close out your position once price hits the target.

RSI lido forex trading strategy – Short positions




For short positions using the RSI lido forex trading strategy, we begin with looking at the price chart. Ideally, we need to see evidence of a bearish crossover of the two moving averages. But as we mentioned, the moving averages can lag quite a bit. Therefore, alternately, we need to see price forming a top. You can also look at a bearish candlestick patterns that might form near the top end of the rally.

Following this, we now look to the RSI lido indicator itself. We need to see the RSI falling from the overbought levels. At times, you might also see the RSI making a sharp turn within the 65 - 75 level of the RSI oscillator. This will suggest that the relative strength in price is turning lower, validating our short bias.

Once you have the above condition met, the next step is to open a short position in the market. Wait for the current candlestick to close and following this, you can then open a sell trade in the market. You should set your stop loss level to the recent pivot high that has formed. In case of strong bearish or breakout candlesticks that emerge, you can also set the stop loss to the candlestick's high.

You can continue to hold on to the position by following the RSI oscillator. As long as the RSI does not settle into the overbought area, you can continue on with the short position. Move your stop loss to break even under such circumstances.

Alternately, you can also make use of the fixed risk to reward ratio and close out your position once price hits the target.

Is the RSI lido forex trading strategy good for you?


The RSI lido forex trading system is a relatively ok trading strategy to follow. However, we think that there is a lot left to be desirable in this trading strategy. The use of the hull moving averages and the fact that they lag quite a bit can be a bit frustrating.

This brings in some subjectivity where things can go wrong. As such, we do not recommend beginners to use the RSI lido forex trading strategy. The indicator settings are also not quite reflective of the time frames that we make use of.

The Fibo pivot indicator can be handy but only in some cases.

Download the complete system description and the files here:

FREE RSI LiDo Trading System

Download the FREE RSI LiDo Trading System for MT4.

To receive my email 100% sure: 
Put my email on your whitelist!

 

Partially Automated Trading Besides Your Day Job

Alerts In Real-Time When Divergences Occur

About Me

I'm Mike Semlitsch the owner of PerfectTrendSystem.com. My trading career started in 2007. Since 2013 I have helped thousands of traders to take their trading to the next level. Many of them are now constantly profitable traders. 

The following performance was achieved by me while trading live in front of hundreds of my clients:

Connect With Me:  

Results From 5 Months!
This service starts soon! Be the first who get's notified when it begins!

This FREE Indicator Can Transform
Your Trading!

FREE Indicator + Telegram Group


Request the Ultimate Double Top/Bottom Indicator which is used by 10,000+ traders.