5 replies to this topic

[dcengr]

System 1: 1) Short when RSI6 > 65 and 75 for yesterday and today 2. Cover when RSI6 < 70. System 2: 1. Short when RSI2 > 80, 90, 95 for the 3 days. 2. Cover when RSI2 < 65. Both systems on Qs, DJIA, and SPX give better than 65% odds of making money. some indices over 70%. System 1 and 2 triggered for Qs (thursday and friday) and DJIA (today), System 2 triggered for SPX (today).

Edited by dcengr, 16 January 2007 - 05:09 PM.

[A-ha]

Here is a very simple , very short term very powerful trading system that will beat most of it: Look for stocks with minimum 0.5M average vol price over $20 RSI(14)<25 And todays candle pattern should be: 2*(candle body size) < (today's high - candle body top) (candle body bottom-today's low) < candle body Entry: Buy next day at the open Exit: sell the following day (hold 1 day) Stop loss: %5 This is an only-long system. If you reverse all parameters you will get the only-short version. Both do well in both bull and bear markets but naturally the long system do better in bull, short system do better in bear markets.

Edited by xD&Cox, 16 January 2007 - 05:46 PM.

[Rogerdodger]

I stuck 3 systems on one SPX chart.
The rules are posted on the chart.

http://stockcharts.com/c-sc/sc?s=$SPX&p=D&yr=0&mn=6&dy=0&i=p46174816428&a=94546561&r=7917.png

[dcengr]

Wrote all those down. Once I'm done reading through this book, I'll be working on a short term comprehensive RSI based trading system, which I'll share. The RSI5 buy and RSI6/RSI2 short systems work amazingly well for ETFs, and the goal will be to apply this to a basket of ETFs so that trades are going all the time, and money is only allocated to high probability trades. I'll look at XD's system also. My guess is that in an IT uptrend, you could use this system to put down a core position at the bottom (if you picked it right), then add to your positions on each RSI5 buy signals, and hedge on each RSI6/RSI2 signals. Probably gives an excellent return.

[Rogerdodger]

Here are the rules for the 3 systems for anybody who wants to copy them.
I've picked em up from others. The RSI 5 is from the old VTO report as noted.
As I have mentioned before, the first two often miss big trending moves and it seems that one might do better by selling only half and moving up the stop to breakeven, or something on that order.

RSI 2:
BUY:
1. Above 200ma
2. 2-period RSI falls 3 days in a row
3. 1st day must be below 60
4. 2-period RSI is below 10 = BUY
5. Buy an additional unit if the 2-period RSI falls 5 days in a row
6. Exit at the close when the 2-period RSI closes above 75
SELL: 1. below 200ma
2. 2-period RSI rises 3 days in a row.
3.The first rising day (day #1) of the 2-period RSI must be above 40.
4. When the 2-period RSI is above 90: SELL SHORT
5. Sell an additional unit if the 2-period RSI rises 5 days in a row
6. Exit at the close when the 2-period RSI closes below 25.

RSI 5:
Buy the Nasdaq 100 Trust (QQQQ) when the 5-day Relative Strength Index (RSI) closes below 30.0.
Sell the Nasdaq 100 Trust (QQQQ) when the 5-day Relative Strength Index (RSI) closes above 50.0.
The Nasdaq 100 Trust is purchased during after-hours trading on the day the RSI buy signal is generated.
The Nasdaq 100 Trust is sold during after-hours trading on the day the RSI sell signal is generated.
The 5-day RSI strategy has a tendency to underperform the buy-and-hold strategy when the market is strong and outperform when the market is weak.
1997 to 2005 Results: NDX "Buy & Hold"up 76.2%, "5 day RSI" up 349.7%
1997 to 2006 Results: NDX "Buy & Hold"up 108.3%, "5 day RSI" up 381.8%
http://www.vtoreport.com/rsi.htm

RSI 12:
Bull Market Signal:
Buy #1: STO & CCI both turn up, unless RSI >70.
Buy #2: CCI turns up and STO below 20.
Sell: STO & CCI both turn down.
Bear Market Signal:
Sell #1: STO & CCI both turn down, Unless RSI<30.
Sell #2: CCI turns down and STO above 80.
Buy: STO & CCI both turn up.
NOTE RSI 12, CCI 10, STO 5,5

[dcengr]

I should add that these RSI systems work great in bull markets, but suck in bear markets. Lately all dip buying programs have been working fantastically. And that in itself is a warning like I posted in jawn's post.