Description

RSI Mean Reversion Fade EA

Short Tagline: A counter-trend mean reversion system that fades statistical extremes.

Short Description:
RSI Mean Reversion Fade EA is a fully automated mean reversion / counter-trend. Expert Advisor for MT4 and MT5. A counter-trend mean reversion system that fades statistical extremes. Built-in risk controls and market filters keep execution disciplined across live and demo accounts.

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Overview

A counter-trend mean reversion system that fades statistical extremes. When RSI reaches deeply oversold/overbought territory inside a non-trending environment, the strategy anticipates a snap-back to the mean (moving average) and enters against the short-term move.

Features

• RSI(2) and RSI(14)
• SMA 100 (mean reference)
• ADX(14) as a range confirmation (must be low)
• Configurable stop-loss, take-profit, and trailing logic
• Session, spread, and news-time filters for disciplined execution
• One-trade-per-bar / duplicate-signal protection
• Clean, single-file MQL4 and MQL5 implementations
• No hidden logic — every input is exposed and documented
• No martingale, no grid, no hidden recovery logic

Trading Strategy

Entry logic: – Long: ADX(14) < 20 (ranging), price near/below SMA100, RSI(2) < 5 (or RSI(14) < 30). Enter on the next candle open after the oversold print.

• Short: ADX(14) 95 (or RSI(14) > 70). Enter on next open.

Exit logic: – Exit long when RSI(2) crosses above 50 or price touches SMA100.

• Exit short when RSI(2) crosses below 50 or price touches SMA100.

Stop-loss: SL at 1.5 x ATR(14) beyond the entry candle extreme; hard cap to avoid catastrophe if range breaks.

Take-profit: Target the SMA100 (mean) or a fixed 1.2R, whichever hits first.

Trailing stop: Minimal trailing; mean reversion favors fixed targets. Optional tighten to break-even after 0.8R.

Break-even: Move to break-even at 0.8R.

Why it works: High win rate in ranging conditions.; Clear, objective entry triggers..

Recommended Settings

• Timeframes: M15, M30, H1.
• Instruments: EURUSD, EURCHF, AUDNZD, USDCAD, EURGBP.
• Account type: ECN/Raw spread accounts preferred
• Minimum recommended balance: $500+ (adjust lot sizing to your risk tolerance)
• VPS: Recommended for 24/5 uptime and consistent execution
• Risk management: Risk 0.75% per trade (counter-trend is riskier). Max 2 simultaneous fades. Hard daily stop at 2.5%.

Supported Markets

Range-bound forex pairs and low-trend indices.

Supported Brokers

Compatible with any regulated MT4 or MT5 broker offering standard order execution (market or instant execution). Works with ECN, STP, and standard account types. No broker-specific dependencies.

Installation Guide

1. Download the .ex4 (MT4) or .ex5 (MT5) file from your purchase delivery.
2. Open MetaTrader, go to File → Open Data Folder.
3. Copy the file into MQL4/Experts (MT4) or MQL5/Experts (MT5).
4. Restart MetaTrader or right-click Expert Advisors in the Navigator and select Refresh.
5. Drag the EA onto the chart of your chosen symbol and timeframe.
6. Enable Allow live trading (and Allow DLL imports if prompted) in the Common tab.
7. Adjust inputs to match your risk profile, then click OK.
8. Confirm AutoTrading is enabled in the toolbar.

• Session filter: Best during quieter periods (late New York, early Asian) when ranges hold.
• Spread filter: Reject if spread > 2 pips; mean reversion edges are thin.
• News filter: Do not fade into high-impact news; pause 30 minutes around events.
• Volatility filter: Require ATR(14) below its 100-period average — reversion works in calm markets, not expansions.

Risk Disclaimer

Trading forex and CFDs carries a high level of risk and may not be suitable for all investors. Past performance, backtest results, and simulated outcomes are not indicative of future results. This EA does not guarantee profits. Always test thoroughly on a demo account before deploying real capital, and never risk funds you cannot afford to lose.

Version

v1.0.0

Support

Support is provided through the marketplace messaging system. Please include your broker, symbol, timeframe, and EA version when reporting an issue.

Updates

Free updates are provided for bug fixes and compatibility improvements. Feature updates may be released as versioned upgrades.

FAQ

Q: Does this EA work on both MT4 and MT5?
A: Yes, separate optimized builds are provided for each platform.

Q: Can I run this on multiple pairs at once?
A: Yes, attach separate instances to separate chart/symbol combinations.

Q: Does it use martingale or grid recovery?
A: No. This is a pure signal-based strategy with defined risk per trade.

Q: What timeframe works best?
A: M15, M30, H1. for the cleanest signals, but the EA can run on other timeframes with adjusted inputs.

Q: Is a VPS required?
A: Not required, but strongly recommended for uninterrupted 24/5 operation.