it uses a close over the 9 SMA for exit. Price above the 160 MA
for longs. Mine has some filters as well that will not take certain
trades - which is why it has a profit factor of around 8 vs 2 or 3
for a standard RSI 2.
Also exiting when the RSI 2 gets overbought can make more money
than exiting over the 9 SMA - it includes a lot more risk -there's
a few trades in the past where if you did that you got caught in an
extended downtrend for months because the RSI 2 was never able to
get get overbought to trigger the exit - whereas price closed above
the 9 SMA a couple times.
I just treat the RSI 2 as a reversion to mean so I've found
using the short term MA for exit over the RSI exit involved much
less risk in the past
it uses a close over
RSI 2 as you said works with pullback to mov ...
Posted by matt on 7th of Oct 2021 at 11:23 am
it uses a close over the 9 SMA for exit. Price above the 160 MA for longs. Mine has some filters as well that will not take certain trades - which is why it has a profit factor of around 8 vs 2 or 3 for a standard RSI 2.
Also exiting when the RSI 2 gets overbought can make more money than exiting over the 9 SMA - it includes a lot more risk -there's a few trades in the past where if you did that you got caught in an extended downtrend for months because the RSI 2 was never able to get get overbought to trigger the exit - whereas price closed above the 9 SMA a couple times.
I just treat the RSI 2 as a reversion to mean so I've found using the short term MA for exit over the RSI exit involved much less risk in the past
here's the Stats on that
Posted by matt on 7th of Oct 2021 at 11:43 am
here's the Stats on that RSI 2 system
Great stuff -thx- each of
Posted by watcdy on 7th of Oct 2021 at 11:25 am
Great stuff -thx- each of these is getting a new toy :)