OVER-RSI Strategy by Herman Ntladi

January 26, 2018 | Author: Herman Seema Ntladi | Category: Foreign Exchange Market, Profit (Economics), Business
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INTRODUCTION : My fellow traders ,I must admit,trading forex is not easy.It has been over a year and a few months now since I started trading.Over the course I have blown more than 8 accounts which I frequently reminisce every time I socialize with my fellow traderets.I must say I look forward to blowing more accounts lol .

Anyway,about 7 months ago i ventured on a quest to find the Holy Grail.Unfortunately I have not found it yet,but through the course of my quest I have managed to discover three strategies of which my favourite being the HERMENZO TRADING STRATEGY which is based on swing trading correlation.And it is through this strategy that I can now stand before people and also call myself a consistent and profitable Forex Trader.I believe that we are at the verge of a break-through in our pursuit to discovering the Holy Grail. I spend 70% of my forex time researching and only 30% trading,hence my discoveries come from hours and hours of research,midnight coffees,skipping tests and staring at my laptop.my inquisitivity has been founded from the conceptualized uncertainty of the forex market.All this has so far been worth it though,I have grown tremendously in terms of my analysis and I am still learning every day.

OVER-RSI STRATEGY BY HERMAN NTLADI Below I will share with you one of the high probability strategies I have discovered while doing my research on forex. A few weeks back I noticed something interesting about the RSI(Relative Strength Index) which I could not turn a blind eye one.That led to the birth of the OVER-RSI STRATEGY. Let me give credit to my mentor Keabetswe TheGreight Mogale who introduced me to forex and has been eagerly incubating me to become the best I can be.Isaac Newton once said ‘’If I have seen further, it is by standing on the shoulders of giants’’,this is true in all respects!

Tools : RSI(14) Unmanipulated chart(ECN Broker chart or investing.com chart)

PAIRS TO TRADE : GBPUSD EURUSD USDCHF EURCAD NZDUSD (and other pairs that have been previously been obeying the OVER-RSI rule,do back testing) General Rules : 1.NO STOP LOSS,take FOREX as an INVESTMENT and not as a GAMBLE.When you buy shares at Vodacom do you tell them to put your stop loss at R40 so that when the share price falls to R40 you will lose all your investments???NO! So DON’T PUT STOP LOSS!your stop loss is your RISK MANAGEMENT!!! 2.You do not need to trade everyday to be a consistent and profitable trader,the more you trade the higher your probability of having losing trades.Trade long term and forget about scalping.most of the traders I know who are profitable hold their trades for days.so next time you see a mobile screenshot with all green trades know that it is 90% likely that those trades have been floating for days. 3.No overleveraging!!!!THIS IS VERY VERY IMPORTANT!!!for every $50 in your account use a lot size of 0.02 and place only one trade.so for a $200 account you can put a maximum of 4 trades at a time with 0.02 lot each.It is true that trading is 70% psychology and 30% strategy.if you wanna make millions a month from a $100 account be prepared to blow accounts and go around telling people that trading is hard.but if you wanna make $50 every month from a $100 account then be prepared to be a consistent and profitable trader.

OVER-RSI STRATEGY BY HERMAN NTLADI 4.The market will at most times retrace before going to your TP,so without good risk management you will blow your account then immediately after margin call the market will make a u-turn and go in your favour.i cannot rephrase this enough.RISK MANAGEMENT IS THE KEY TO THIS STRATEGY!!!!!! 5.DO NOT TRADE THIS STRATEGY IMMEDIATELY AFTER THE NEWS OR IMMEDIATELY AFTER MONDAY GAPS!!!wait for the market to cool down first.But you are more than welcome to leave floating trades over the weekend.

6.This one is very very important,I always tell it to my students in every trading session.FOREX IS NOT ABOUT WHERE YOU GET IN,IT IS ABOUT WHERE YOU GET OUT!!! Quick question for you to answer before going to the next page ; is it possible for you to buy EURUSD with 0.02 lot at 15:30 SA time and I also sell EURUSD at 15:30 SA TIME,on the same day as you.and we all end up making profit?

(Kind reminder ; RISK MANEGEMENT is KEY bagaetsho!!!)

OVER-RSI STRATEGY BY HERMAN NTLADI You probably said NO to my question,which is incorrect.look at the EURUSD below.

Lets say you placed a buy on the blue line on the 2016-08-17 and I also placed a sell on the very same blue line,same time.you would have made profit if you closed on the 19th(green circle) and I would have made profit if I closed on the 1st September(red circle).so it is not about where you get in,it is about where u get out.hence next time you place a sell then a few seconds later you see one FOREX GURU giving out a buy signal on the same pair do not close your trade,you are not looking at the same exit levels.Composure!

OVER-RSI STRATEGY BY HERMAN NTLADI TRADING RULES BUY SETUP : -use 4H timeframe(never ever use 1H just because u wanna get rich by next month) -RSI has to not have retraced to the level it was on when it recently got into the oversold -Your TAKE PROFIT is where the market was when the RSI reached the oversold level

Look at the above chart.Our RSI reached the undersold level 2016-07-05(where the red vertical line crosses the green horizontal line).The market value was 1.3167 at the time.So that was a signal that if the market goes below that point we should keep buying and put 1.3167 as our TP. So on the 10th the market moved down to about 1.2900,which means we had an opportunity to place a buy and immediately after placing the trade put 1.3167 as our TP.The shaded area represents the opportunities we had to place trades. Had you placed the trade on the 10th at level 1.2900,the market would have went against you by +50 pips.but it would have came back on the 2016-07-12 to hit your TP(where the blue light crosses the green line) which is about 267 pips profit

OVER-RSI STRATEGY BY HERMAN NTLADI SELL SETUP : -use 4H Time Frame(you heard me about 1H TF,never ever!) -RSI has to not have retraced to the level it was on when it recently got into the overbought -Your TAKE PROFIT is where the market was when the RSI reached the overbought level

On the chart above,the RSI reached the overbought level on the 2016-07-12 of which the market value was 1.3231(where the red vertical line crossed the green horizontal line).So that was a signal that if the market goes above the signal line you must sell and place 1.3231. The market then went to 1.3300 on the 13th,so if u placed your trade then it would have came back to hit your TP on the 2016-07-13. Which is about 69 pips profit. You do not need a perfect entry,selling at any point above the TP level will still give your profit.if you see the market at 50 pips above the TP level then you call still enter,that would mean 50 pips profit for you when the market comes back. REMEMBER : It is not about where you get in,but about where you get out!


Ohh look,the RSI reached the undersold on 2016-08-08 at market value 1.3034,and it is not below that undersold level on 1.2998.so let me buy and place my TP at 1.3034

Two days later…2016-08-10 …TP hit!36 pips profit!


Look again,the RSI reached the overbought level on the 2016-08-18 with market value of 1.3068 and went above it,so let me sell here at 1.3147 and my TP as 1.3068 and see what happens.

1 day later…2016-08-19 …TP hit!!!79 pips profit!MAMA I MADE IT! MAMA,I AM A GURU NOW!









NB:If the market just touches the oversold/overbought level and makes a u-turn it means there is no signal,hence no trade!!!!also,if the RSI tries to recorrect itself(which is very unlikely on 4H,but still possible) ,that will lead to the value where the market reached the oversold/undersold level changing also.so that means u will also have to adjust your TP. CLOSING NEGATIVE TRADES : -Close a losing buy if the RSI goes to the overbought and the trade is still not in profit -close a losing sell if the RSI goes to the oversold and the trade is still not in profit


NZDUSD has produced over 13 signals from 1 January 2016 and only has one loss signal to date. The loss was about 110 pips but your wins would have given you more than 1200 pips.so that's still pretty good. anyway,on the 3rd June 2016 you would have received a sell signal,then the market would have went against you.The RSI would have reached the oversold level on the 18th july 2016.(Hence giving you a buy signal) so you must exit right there at a loss and wait for a clear buy signal. if our initial position was a buy the same principle would have applied.You wait for the RSI to reach the overbought level then get out.

OVER-RSI STRATEGY BY HERMAN NTLADI CONCLUSION It is said that the only thing certain about the market is uncertainty,so practice and practice and practice on a demo until you get this strategy right. ‘’There is no force which is greater than that of an event whose time has come’’ This is our time! May the pips be in your favour.


For any questions about the strategy or any input on how to make it better please do not hesitate to contact me . Email address Address : [email protected] Facebook : HERMAN DE ADMIRE MR-NTLADI’SIR

(and Remember,RISK MANAGEMENT IS KEY!!!)

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