I've posted the RSI 2 strategy numerous times, but here it is
again since today is meeting the condition:
Key statistics:
As long as the 2 length RSI stays below 10%, the RSI 2 Strategy
will take a long position today at the close.
I've attached the Statistics:
going back to 1993, there have been 181 Trades, 78.5% winning
trades
Out of 18 years 4 months, the system was only in the market 26%
of the time.
No losing years, average of about 10 trades per year.
Rules:
Longs - RSI 2 falls below 10%, go long if SPY is above the 200
day MA. Close the trade out when price closes back over the 9
SMA
Shorts - - RSI 2 is above 90%, go short if SPY is below the
200 day MA. Close the trade out when price closes back below the 8
SMA
The system is a revision to the mean system, it does well via
buying pullbacks in uptrends and shorting bounces in downtrends and
bear markets
Where the system get's
caught or failsis when a downtrend first begins and the
system buys the first dip, or shorting after a bottom has been put
in place.
NO stops are used, stops are when price closes over the MA
Posted by falcon5678 on 10th of Apr 2012 at 09:54 am
So this isn't an end-of-day kind of system Matt? It
triggers immediately when the conditions are met? Are
you going to be alerting on the blog as soon as it happens (I had
better pay more attention if you are!).
As Matt somewhat noted in his post saying "As long as the 2
length RSI stays below 10%, the RSI 2 Strategy will take a long
position today at the close", the system would be end of day
because you would want to be sure the SPY is closing below (or
above) the designated RSI level.
This system will likely make its way into the Mechanical Systems
section. We hope to expand that section and the goal as you
can read in there is to provide a place where members can view and
interact with many of the rule based systems we create. We
likely won't be alerting members to these signals unless we happen
to see them since as the section is built out it could become very
cumbersome. I think what will end up happening is that we
will say there will be no alerts so there is no expectation and
then will do our best to alert members to every signal. Stay
tuned!
RSI 2 SPY Strategy
Posted by matt on 9th of Apr 2012 at 03:00 pm
I've posted the RSI 2 strategy numerous times, but here it is again since today is meeting the condition:
Key statistics:
As long as the 2 length RSI stays below 10%, the RSI 2 Strategy will take a long position today at the close.
I've attached the Statistics:
going back to 1993, there have been 181 Trades, 78.5% winning trades
Out of 18 years 4 months, the system was only in the market 26% of the time.
No losing years, average of about 10 trades per year.
Rules:
Longs - RSI 2 falls below 10%, go long if SPY is above the 200 day MA. Close the trade out when price closes back over the 9 SMA
Shorts - - RSI 2 is above 90%, go short if SPY is below the 200 day MA. Close the trade out when price closes back below the 8 SMA
The system is a revision to the mean system, it does well via buying pullbacks in uptrends and shorting bounces in downtrends and bear markets
Where the system get's caught or failsis when a downtrend first begins and the system buys the first dip, or shorting after a bottom has been put in place.
NO stops are used, stops are when price closes over the MA
again I post his for informational purposes only
So this isn't an end-of-day
Posted by falcon5678 on 10th of Apr 2012 at 09:54 am
So this isn't an end-of-day kind of system Matt? It triggers immediately when the conditions are met? Are you going to be alerting on the blog as soon as it happens (I had better pay more attention if you are!).
As Matt somewhat noted in
Posted by tom on 10th of Apr 2012 at 10:14 am
As Matt somewhat noted in his post saying "As long as the 2 length RSI stays below 10%, the RSI 2 Strategy will take a long position today at the close", the system would be end of day because you would want to be sure the SPY is closing below (or above) the designated RSI level.
This system will likely make its way into the Mechanical Systems section. We hope to expand that section and the goal as you can read in there is to provide a place where members can view and interact with many of the rule based systems we create. We likely won't be alerting members to these signals unless we happen to see them since as the section is built out it could become very cumbersome. I think what will end up happening is that we will say there will be no alerts so there is no expectation and then will do our best to alert members to every signal. Stay tuned!
$NAMO also below Bollinger band
Posted by jlevinthal on 9th of Apr 2012 at 07:16 pm
I had to edit the
Posted by matt on 9th of Apr 2012 at 03:01 pm
I had to edit the sticky post on RSI 2, therefor you will need to hard refresh it to see the changes I made, just click on the URL
http://breakpointtrades.com/blog/post/196495/