MT4 Cyclic RSI EA (cRSI) Indicator and Expert Advisor

[BurtonM]

MT4 Cyclic RSI EA (cRSI) Indicator and Expert Advisor​

This Indicator and Expert Advisor were a requested on this post Free Custom EA Coding for MT4 & MT5

cRSI Indicator Overview​

The Cyclic RSI (cRSI) is an advanced technical indicator that applies cyclical smoothing to the traditional Relative Strength Index (RSI). It was introduced in the book "Decoding The Hidden Market Rhythm - Part 1: Dynamic Cycles" (2017) and is designed to filter out market noise while preserving the essential cyclical components of price movements.

Key Features​

- Cyclic Smoothing: Applies specialized filtering to reduce noise without introducing significant lag
- Dynamic Bands: Automatically calculates upper and lower bands based on recent price history
- Dominant Cycle Detection: Uses cycle analysis to identify recurring patterns in price movements
- Overbought/Oversold Detection: Provides more reliable signals than standard RSI by adapting to market conditions

Parameters​

- Dominant Cycle Length: The primary cycle period detected in the market (default: 20)
- Vibration: Controls the smoothing intensity (default: 10)
- Leveling: Determines how the upper and lower bands are calculated (default: 10.0)

Interpretation​

The cRSI indicator displays three lines:​

1. Main Line (Magenta): The cyclically smoothed RSI value
2. Upper Band (Aqua): Dynamic resistance level based on recent price action
3. Lower Band (Aqua): Dynamic support level based on recent price action

Trading signals occur when:
- Bullish: cRSI crosses below the lower band and then begins to rise
- Bearish: cRSI crosses above the upper band and then begins to fall

cRSI Expert Advisor​

The cRSI Expert Advisor is an automated trading system that implements a trading strategy based on the Cyclic RSI indicator. It's designed to capture cyclical price movements with defined risk management parameters.

Trading Strategy​

- Entry Logic: Opens a buy position when the cRSI drops below the lower band
- Exit Logic: Closes the position when either:
- The cRSI rises above the upper band (profit target)
- The position has been held for a maximum number of bars (time-based exit)
- The stop loss is hit (risk management)

Risk Management Features​

- Position Sizing: Automatically calculates position size based on account risk percentage
- Stop Loss: Fixed stop loss in pips to limit downside risk
- Maximum Hold Time: Limits exposure by closing trades after a specified number of bars

Parameters​

Trading Parameters​

- RiskPercent: Percentage of account balance to risk per trade (default: 0.1%)
- StopLoss: Stop loss distance in pips (default: 150)
- MaxBarsHeld: Maximum number of bars to hold a position (default: 5)

Indicator Parameters​

- DominantCycle: Length of the dominant market cycle (default: 20)
- Vibration: Controls indicator smoothing (default: 10)
- Leveling: Controls band calculation (default: 10.0)

Technical Parameters​

- MagicNumber: Unique identifier for this EA's trades (default: 12345)
- Slippage: Maximum allowed slippage in pips (default: 3)

Advantages​

- Cyclical Awareness: Captures recurring market patterns that traditional indicators might miss
- Dynamic Adaptation: Adjusts to changing market conditions through adaptive bands
- Risk Control: Built-in risk management features to protect capital
- Clear Signals: Provides objective entry and exit points without ambiguity

Installation and Setup​

1. Install both the cRSI indicator and cRSI_EA in your MT4 platform
2. Make sure the cRSI indicator is installed in your MT4 indicators folder
3. Attach the EA to your desired chart
4. Adjust parameters based on your trading preferences and risk tolerance
5. Backtest before live trading to verify performance on your specific instruments

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