The robot opens a BUY market order if the larger RSI is above 50 but below 70, the smaller RSI is below 80, and a 3 period EMA seems to be going up.
The results are not good:
(Back-test on 60 minute chart, EURUSD, 1-1-2011 to 1-1-2012. Stop-loss 23, take-profit 54, trailing-stop 42).
You'll notice it placed no long trades. This is because there was a bug in the way it calculated the RSI values.
I remember this robot performing reasonably well on demo tests (but as with all my robots, only for a while). I must have fixed the bug in the version I was demo trading, and this version is one of the original backups.
Let's fix the code (available here), tweak the settings a little, and see what happens:
(Back-test on 60 min EURUSD chart, 1-1-2011 to 1-1-2012, stop-loss 30, take-profit 500, trailing-stop 30).
The win rate has almost doubled from 25% to 47%, and it makes a profit of almost 10% over the year, $995.
Not too happy with the equity curve though. Notice it stops making profit about half way through? This happens on too many robot back-tests.
As it turned out, there was more than 1 bug in the code. There's a section called "ASKdiff" which in place of any other sort of trade trigger, makes sure the ASK isn't too far away from a 3 period EMA. It looks like I coded it quite badly and it also wouldn't allow a BUY condition.
Almost all of my early robots used this code. I don't think all of them failed to place BUY trades, so I must have modified it at some stage. Yikes, I better go check!
