Sie sind auf Seite 1von 13

OVER-RSI STRATEGY BY HERMAN NTLADI

THIS STRATEGY SHOULD

NOT BE SOLD,IF ANYONE SELLS IT TO YOU CONTACT ME.DETAILS

INLUDED ON THE LAST PAGE

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 DONT 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!

OVER-RSI STRATEGY BY HERMAN NTLADI


ADDITIONAL EXAMPLE 1:

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 later2016-08-10 TP hit!36 pips profit!

OVER-RSI STRATEGY BY HERMAN NTLADI


ADDITIONAL EXAMPLE 2:

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 later2016-08-19 TP hit!!!79 pips profit!MAMA I MADE IT!


MAMA,I AM A GURU NOW!

OVER-RSI STRATEGY BY HERMAN NTLADI


BEFORE

AFTER

BEFORE

OVER-RSI STRATEGY BY HERMAN NTLADI

AFTER

BEFORE

OVER-RSI STRATEGY BY HERMAN NTLADI

AFTER

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

OVER-RSI STRATEGY BY HERMAN NTLADI

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.

YOURS
HERMAN NTLADI

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 : ntladih1232@gmail.com
Facebook : HERMAN DE ADMIRE MR-NTLADISIR

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