ALTERNATIVE • MEAN REVERSION • QUANTITATIVE

FiboReversion
Edge

A professional, executable mean-reversion trading strategy using Fibonacci Pivot Points and RSI exhaustion signals.

Explore Core Logic View Visual Guides
1% Risk per Opportunity
H1 / M15 Recommended
FiboReversion Edge Signal Judgment Diagram
Core Framework
Mean Reversion
Primary Levels
Fibonacci Pivots
Confirmation
RSI + Rejection
Risk Management
Dynamic 1% Rule
STRATEGY OVERVIEW

A Professional Alternative to Trend-Chasing

FiboReversion Edge is a quantitative mean-reversion trading strategy designed for traders seeking high-probability setups at statistically significant price levels. Instead of following breakouts, the strategy identifies exhaustion at Fibonacci-derived pivot resistance and support zones using precise rejection candle patterns confirmed by RSI momentum divergence from extreme levels.

Built for robustness and simplicity, it uses only standard, widely available indicators and requires no proprietary data feeds. The complete logic is fully transparent and implemented in ready-to-deploy MT4 and MT5 Expert Advisors.

CORE LOGIC

Precise Entry • Defined Risk • Clear Targets

Long Participation Opportunity
At S1 Support Level
  • Price produces a rejection candle at S1: lower wick pierces S1 and closes back above it.
  • RSI(14) reading below 30 confirms oversold exhaustion.
  • Entry executed at market on the next bar open.
  • Stop Loss: Placed just below S2 + buffer (dynamic daily level).
  • Take Profit: Primary target at the daily Pivot Point (PP).
Short Participation Opportunity
At R1 Resistance Level
  • Price produces a rejection candle at R1: upper wick pierces R1 and closes back below it.
  • RSI(14) reading above 70 confirms overbought exhaustion.
  • Entry executed at market on the next bar open.
  • Stop Loss: Placed just above R2 + buffer (dynamic daily level).
  • Take Profit: Primary target at the daily Pivot Point (PP).
Position Sizing: Lot size is dynamically calculated to risk exactly 1% of account balance based on the distance between entry price and stop-loss level. This ensures consistent risk exposure regardless of volatility or instrument.
VISUAL GUIDES

Clear Signal Identification & Execution Process

Professional diagrams designed for quick comprehension and training.

Signal Judgment
ENGLISH
FiboReversion Edge - Signal Judgment
Rejection candle at R1 + RSI > 70 triggers short participation opportunity.
Execution Flow
ENGLISH
FiboReversion Edge - Execution Flow
Simple 6-step process from daily pivot calculation to order execution and monitoring.
PARAMETERS

Fully Customizable & Transparent Settings

Parameter Default Value Description
Magic Number 778899 Unique identifier for EA orders
RSI Period 14 Standard period for overbought/oversold detection
ATR Period 14 Volatility reference (optional context)
Risk per Opportunity 1.0% Fixed fractional risk — dynamic lot sizing
Buffer Pips 10 Safety buffer around pivot levels
Max Spread 35 points Filters execution during high spread periods
Trading Hours 08:00 – 20:00 Server time window (fully adjustable)
All parameters are exposed in both MT4 and MT5 versions for easy optimization and broker adaptation.

Ready-to-Deploy Files Included

Everything you need for immediate implementation and further customization.

MT4 Expert Advisor
FiboReversion_Edge_MQL4.mq4 — Fully commented bilingual parameters
MT5 Expert Advisor
FiboReversion_Edge_MQL5.mq5 — Modern CTrade implementation
Important Risk Disclosure
Trading foreign exchange, futures, stocks, and other leveraged instruments carries a high level of risk and may not be suitable for all investors. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before deciding to participate in any financial market, you should carefully consider your investment objectives, level of experience, and risk appetite. There is a possibility that you could sustain a loss of some or all of your initial investment. You should be aware of all the risks associated with trading, and seek advice from an independent financial advisor if you have any doubts.

This strategy documentation and accompanying code are provided for educational and informational purposes only. The authors and distributors accept no liability for any financial losses incurred through the use of this material. Always perform your own due diligence, backtesting, and forward testing on a demo account before using any automated system on a live account.