15 replies to this topic

[airedale88]

roger, this is going back a bit . Gerry Appel, Systems and Forecasts newsletter and the macd creator, published some reports on trading systems/methods under the name of the SISRG (scientific investing systems research group, i believe) back in the eighties. these systems were all backtested with many yrs of data. one of his methods was using a 5 day RSI with rules somewhat similar to the ones you use. it was a profitable system. he then showed that filtering the trades using different intermediate momentum indicators reduced draw downs, reduced trading frequency while raising the win/loss rate, and increasing the % profits per trade by holding trades into extended moves. he used these methods in his managed accounts. you might want to contact his company to see if those reports or updated material is available.

[Rogerdodger]

Hi airedale.
Thanks for the info.
So far I have found these systems show oversold or overbought.
But we all know that has limited value.

Redfoliage2:

Roger: Do you must use SharpChart2 to do the overlay of the indicators on each other? Which is a member-only service from StockCharts.com? Thanks.

I assume that free users can overlay indicators on daily charts.
There are 4 selections of where you put the indicator: Above, Below, Behind Price, Behind Indicator.
On the chart above, I selected "Above" for the RSI and selected "2" as the period and green as the color.
Then I selected "Behind Indicator" for the next RSI and selected "3" as the period and red for color.

SC Subscribers can save such chart setups and also apply them to various timeframes and get larger charts.

[bln]

I can recommend using Collective2 for real life testing of mechanical systems or discretionary methods/strategies. Lots of different statistics and metrics are provided.

[traderpaul]

Hi airedale.
Thanks for the info.
So far I have found these systems show oversold or overbought.
But we all know that has limited value.

Redfoliage2:

Roger: Do you must use SharpChart2 to do the overlay of the indicators on each other? Which is a member-only service from StockCharts.com? Thanks.

I assume that free users can overlay indicators on daily charts.
There are 4 selections of where you put the indicator: Above, Below, Behind Price, Behind Indicator.
On the chart above, I selected "Above" for the RSI and selected "2" as the period and green as the color.
Then I selected "Behind Indicator" for the next RSI and selected "3" as the period and red for color.

SC Subscribers can save such chart setups and also apply them to various timeframes and get larger charts.

Roger, That is just a momentum indicator.....comparing today vs 5 periods ago.....if the up momentum slows down it is a sell......if the momentum slows down on the sell side, it is a buy......

[redfoliage2]

Hi airedale.
Thanks for the info.
So far I have found these systems show oversold or overbought.
But we all know that has limited value.

Redfoliage2:

Roger: Do you must use SharpChart2 to do the overlay of the indicators on each other? Which is a member-only service from StockCharts.com? Thanks.

I assume that free users can overlay indicators on daily charts.
There are 4 selections of where you put the indicator: Above, Below, Behind Price, Behind Indicator.
On the chart above, I selected "Above" for the RSI and selected "2" as the period and green as the color.
Then I selected "Behind Indicator" for the next RSI and selected "3" as the period and red for color.

SC Subscribers can save such chart setups and also apply them to various timeframes and get larger charts.

Hi, Roger: Thanks for your info. You must be a member since non-members can only see 3 selections in the drop-down list where you put the indicator: Above, Below, Behind Price. No Behind Indicator is displayed. I looked into stockcharts.com and it says only SharpCharts2 can do overlaying indicator on another indicator.

[Rogerdodger]

Today made a lower low but a higher high. So the rsi remained flat!