6 replies to this topic

[newportsurf]

Just wanted to say thanks for such a killer board. All you guys rock.

I have posted a few times and will try and contribute more often. I have been trading since 1994. I was a licensed broker and had my s3 as well. The trader that tought me used to be on Chicago Tv and we would also go live radio on with Prechtor chronie and I forget the other guys name.

Anyway, he was a good timer but bad trader. I still trade, and I believe he pushes pink sheet crap stocks now?! Go figure.

About myself, I trade on price alone. No turn dates or cycles or elliot. Just price and chart patterns.

If anyone is interested I can share some of my signals.

And for system traders, I do just check the free signal from eASCT. I tried there trial once, but free one is enogh for me.

And here is on system that seems logical. I dont trade it, but seems simple and straight forward. Also they have a few others..................... (thanks for reading, and thanks for having me! good luck to all) Newport

The Improved R2 Strategy is a simple six-rule Market Timing Strategy which uses the 2-period RSI as its primary tool. Our research has shown that there is little statistical evidence using the standard 14-period RSI. But, when you shorten the period to a 2-, 3- or 4-period RSI, test results significantly improve. By using the 2-period RSI as we do here, you can see back-tested results of 84.31% correct in the S&P 500 Index going back to 1995 (12 years).

Here are the Rules:

1. The SPX is above its 200-day simple moving average (you can use any S&P 500 derivative product, including the SPYs, E-minis, etc).

2. Day 1 - the 2-period RSI is below 65. This tells us that the market is in a neutral to possibly oversold condition.

3. Day 2 - the 2-period RSI closes lower than Day 1.

4. Day 3 - the 2-period RSI closes lower than Day 2.

5. Buy the market (SPX, SPY, E-mini, etc) on the close Day 3.

6. Exit when the 2-period RSI closes above 75.

Here are the simulated results from Jan 1, 1995 to December 31, 2006:

Number of trades: 102
Percent correct: 84.31%
Total S&P points gained: 1013.90
Average holding period/trade: 5.76 days

[newportsurf]

Way off topic:Surfing

If anyone is familiar with the Wedge in Newport, It was going off this week. Fletcher was surfing it.. I dont surf it but watch. I surf 52st if anyone cares.

The video is short, but you can see how wicked it gets! Awesome to watch in person!

Newport

[Rogerdodger]

Welcome. Thanks for sharing.
It helps us all learn.
There are lot's of different styles of traders here for sure.

I have posted 3 systems on my blog.

One similar system also uses that 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. Today 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.

I don't have any simulated results, but I have noted that one needs to pay attention to support and resistance in addition to simply overbought or oversold on the RSI 2
For example, when the long uptrend line was broken at the end of February.
http://stockcharts.c...9909&r=5116.png

[newportsurf]

Interesting stuff for sure..... And yes, that much pain is hard to handle for short term trading... I can think of a few more choice words for your "OUCH" anotation as well I will check out your blog......... Thanks, Newport

[no_mind]

Newport,
Thank you for the RSI trade info and the surfing videos. I love to watch surfing too. As I live in Northern Cal. and live 40 minutes away from Maverick's, that's my favorite spot. It's too bad the 2007 contest didn't come off this year; shoulda, woulda, coulda started the window in Dec.06. Good to see you got some action this week down there. We had some up here too but not what it could have been historicaly speaking. Here's a video from the 2006 contest.
and some awesome stills by Ed Grant of the same contest.
Best,
Tom

[newportsurf]

Tom, Those are some sick pics. Killer vid too! I will try and post some personal pics I took of the wedge sometime. Stoked I found this place! Talk to you soon! Newport

[vitaminm]

Just wanted to say thanks for such a killer board. All you guys rock.

I have posted a few times and will try and contribute more often. I have been trading since 1994. I was a licensed broker and had my s3 as well. The trader that tought me used to be on Chicago Tv and we would also go live radio on with Prechtor chronie and I forget the other guys name.

Anyway, he was a good timer but bad trader. I still trade, and I believe he pushes pink sheet crap stocks now?! Go figure.

About myself, I trade on price alone. No turn dates or cycles or elliot. Just price and chart patterns.

If anyone is interested I can share some of my signals.

And for system traders, I do just check the free signal from eASCT. I tried there trial once, but free one is enogh for me.

And here is on system that seems logical. I dont trade it, but seems simple and straight forward. Also they have a few others..................... (thanks for reading, and thanks for having me! good luck to all) Newport

The Improved R2 Strategy is a simple six-rule Market Timing Strategy which uses the 2-period RSI as its primary tool. Our research has shown that there is little statistical evidence using the standard 14-period RSI. But, when you shorten the period to a 2-, 3- or 4-period RSI, test results significantly improve. By using the 2-period RSI as we do here, you can see back-tested results of 84.31% correct in the S&P 500 Index going back to 1995 (12 years).

Here are the Rules:

1. The SPX is above its 200-day simple moving average (you can use any S&P 500 derivative product, including the SPYs, E-minis, etc).

2. Day 1 - the 2-period RSI is below 65. This tells us that the market is in a neutral to possibly oversold condition.

3. Day 2 - the 2-period RSI closes lower than Day 1.

4. Day 3 - the 2-period RSI closes lower than Day 2.

5. Buy the market (SPX, SPY, E-mini, etc) on the close Day 3.

6. Exit when the 2-period RSI closes above 75.

Here are the simulated results from Jan 1, 1995 to December 31, 2006:

Number of trades: 102
Percent correct: 84.31%
Total S&P points gained: 1013.90
Average holding period/trade: 5.76 days

$SPX //buy when rsi2>rsi3 and sell when rsi2<rsi3

http://stockcharts.com/h-sc/ui?s=$SPX...id=p99011807860