Relative Vigor Index (RVI) - EURUSD Scalping Strategy [Video]

This material is devoted to a not very popular (so far? 🙂) indicator RVI - Relative Vigor Indexwhich is a very good tool for supporting higher frequency trading (scalping and related). What are its strengths? How can it be used in practice? We decided to check it out.

Advantages:

• • Availability - Despite the lack of popularity, the indicator can be found by default on all popular trading platforms such as MT4 or MT5.
  • Relatively few false signals - thanks to its design, RVI filters signals very well when the market is in a sideways trend. This can be seen from the low number of consecutive losing trades recorded during the backtest (only 4).
  • Good risk-reward ratio (risk: reward) in the amount of 1: 2, which gives us a considerable margin of error.
  • It operates on the most liquid currency pair which means low transaction costs.

Disadvantages:

• • It is a trend-following strategy, so there will always be false market entry signals at times of low volatility that will diminish our result.

Trading strategies is an educational cycle in which we present interesting investment systems intended for Forex market. We discuss the most important principles such as entering and exiting a transaction, the degree of risk, assessing the advantages and disadvantages and checking what results they generated on historical data.

Do you want us to check a specific strategy for you? Let me know in the comment!

The partner of the educational cycle is Tickmill broker.