Kioseff Trading - AI-Optimized RSI

16 ธ.ค. 2022

AI-Optimized RSI

Introducing AI-Optimized RSI: a streamlined solution for traders of any skill level seeking to rapidly test and optimize RSI. Capable of analyzing thousands of strategies, this tool cuts through the complexity to identify the most profitable, reliable, or efficient approaches.
Paired with TradingView's native backtesting capabilities, the AI-Optimized RSI learns from historical performance data. Set up is easy for all skill levels, and it makes fine-tuning trading alerts and RSI straightforward.

Features

• Purpose: Uncover optimal RSI settings and entry levels with precision. Say goodbye to random guesses and arbitrary indicator use—this tool provides clear direction based on data.
  
• Target Performance: You set the goal, and AI-RSI seeks it out, whether it's maximizing profits, efficient trading, or achieving the highest win rate.
  
• AI-Powered: With intelligent AI recommendations, the tool dynamically fine-tunes your RSI approach, steering you towards ideal strategy performance.
  
• Rapid Testing: Evaluate thousands of RSI strategies.
  
• Dual Direction: Perfect both long and short RSI strategies with equal finesse.
  
• Deep Insights: Access detailed metrics including profit factor, PnL, win rate, trade counts, and more, all within a comprehensive strategy script.
  
• Instant Alerts: Set alerts and trade.
  
• Full Customization: Test and optimize all RSI settings, including cross levels, profit targets and stop losses.
  
• Simulated Execution: Explore the impact of limit orders and other trade types through simulation.
  
• Integrative Capability: Combine your own custom indicators or others from the TradingView community for a personalized optimization experience.
  
• Flexible Timeframes: Set your optimization and backtesting to any date range.
  

Key Settings



The image above shows explanations for a list of key settings for the optimizer.

• Direction: This setting controls trade direction: Long or Short.
  
• Entry Condition: Define RSI entry: Select whether to trigger trades on RSI crossunders or crossovers.
  
• RSI Lengths Range: Choose the range of RSI periods to test and find the best one.The AI will find the best RSI period for you.
  
• RSI Cross Range: Set the range for RSI levels where crosses trigger trade signals. The AI will find the best level for you.
  
• Combinations: Select how many RSI strategies to compare.
  
• Optimization Type: Choose the goal for optimization and the AI: profit, win rate, or efficiency.
  
• Profit Target: Set your profit target with this setting.
  
• Stop Loss: Decide your maximum allowable loss (stop loss) per trade.
  
• Limit Order: Specify whether to include limit orders in the strategy.
  
• Stop Type: Choose your stop strategy: a fixed stop loss or a trailing stop.
  

How to: Find the best RSI for trading

It's important to remember that merely having the AI-Optimized RSI on your chart doesn't automatically provide you with the best strategy. You need to follow the AI's guidance through an iterative process to discover the optimal RSI settings and strategy.

1.Starting Your Strategy Setup

Begin by deciding your goals for each trade: your profit target and stop loss. You'll also choose how to manage your stops – whether they stay put (fixed) or move with the price (trailing), and whether you want to exit trades at a specific price (limit orders). Keep the initial settings for RSI lengths and cross ranges at their default to give the tool a broad testing field. The AI's guidance will refine these settings to pinpoint the most effective ones through a process of comprehensive testing.



The image above shows our chart prior to any optimization efforts.

Note: the settings shown above in the key settings section will be used to start our demonstration.

2. Follow AI’s suggestions

Optimization Prompt: After loading your strategy, the indicator will prompt you to change the RSI length range and RSI level range to a better performing range.

Continue changing the RSI length range and RSI level range to match the indicator's suggestions until "Best Found" is displayed!



The image above shows results after we applied the tool’s suggestions. New suggestions have appeared, and we will continue to apply them.



Continue to adjust settings as recommended by the optimizer. If no better options are found, the optimizer will suggest increasing the number of combinations. Repeat this process until the optimizer indicates that the optimal setting has been identified.



Success! With the "Best Found" notification, an optimized RSI is now active. The AI will keep refining the strategy based on ongoing performance, ensuring continuous optimization.

AI Mode

AI Mode incorporates Heuristic-Based Adaptive Learning to fine-tune trading strategies in a continuous manner. This feature consists of two main components:

Heuristic-Based Decision Making: The algorithm evaluates multiple RSI-based trading strategies using specific metrics such as Profit and Loss (PNL), Win Rate, and Most Efficient Profit. These metrics act as heuristics to assist the algorithm in identifying suitable strategies for trade execution.

Online Learning: The algorithm updates the performance evaluations of each strategy based on incoming market data. This enables the system to adapt to current market conditions.

Incorporating both heuristic-based decision-making and online learning, this feature aims to provide a framework for trading strategy optimization.

Settings

AI Mode Aggressiveness:
Description: The "AI Mode Aggressiveness" setting allows you to fine-tune the AI's trading behavior. This setting ranges from “Low” to “High”, with “High” indicating a more assertive trading approach.

Functionality: This feature filters trading strategies based on a proprietary evaluation method. A higher setting narrows down the strategies that the AI will consider, leaning towards more aggressive trading. Conversely, a lower setting allows for a more conservative approach by broadening the pool of potential strategies.

Adaptive Learning Aggressiveness:
Description: When Adaptive Learning is enabled, the "Adaptive Learning Aggressiveness" setting controls how dynamically the AI adapts to market conditions using selected performance metrics.

Functionality: This setting impacts the AI's responsiveness to shifts in strategy performance. By adjusting this setting, you can control how quickly the AI moves away from strategies that may have been historically successful but are currently underperforming, towards strategies that are showing current promise.

Optimization

Trading system optimization is immensely advantageous when executed with prudence.
Technical-oriented, mechanical trading systems work when a valid correlation is methodical to the extent that an objective, precisely-defined ruleset can consistently exploit it. If no such correlation exists, or a technical-oriented system is erroneously designed to exploit an illusory correlation (absent predictive utility), the trading system will fail.

Evaluate results practically and test parameters rigorously after discovery. Simply mining the best-performing parameters and immediately trading them is unlikely a winning strategy. Put as much effort into testing strong-performing parameters and building an accompanying system as you would any other trading strategy. Automated optimization involves curve fitting - it's the responsibility of the trader to validate a replicable sequence or correlation and the trading system that exploits it.

11 มิ.ย.

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Version 1.001: Improved functionality for alerts

17 พ.ย.

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Updated limit order alert messages