Back-testing the RSI divergence strategy on FX in Python. Should it be used as a stand-alone strategy?

Sofien Kaabar, CFA
7 min readMay 20, 2020

This article will deal with a famous technical trading strategy called the divergence. We will define what a divergence is, learn how to code it, and present the results of a back-test over several currency pairs. A reminder, that we can buy the FX pair and short (sell) it whenever we have a trading signal generated by the system we’re about to build together.

I have just published a new book after the success of New Technical Indicators in Python. It…

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