He has been in the market since and working with Amibroker since In this article I look at a popular method for trading stocks and futures which utilises the RSI 2 indicator.
Lily Rios Gracias por el indicador, tengo una pregunta necesito programar un screener de valores que e Horance 4 weeks ago. Horance 1 month ago. Nicolas 1 month ago. Bard Great job and thanks very much for posting this nicolas.
I've backtested both these RSI a Nicolas So you want to bound this oscillator with a scale made of std devs but of price? Barrabas15 2 months ago. ALE 3 months ago. Nicolas 3 months ago. Gianluca Hello Nicolas, my prt become stuck when i load the indicator, is there any problem with it? Would it be possible to draw two lines?
Nicolas 4 months ago. SoloContado If you smooth the signal using a "summation" function, you get a nice "crossing of 0" graph Despair 5 months ago. Bard Cheers for doing Ehler's latest indicator Despair, much appreciated. Mean MA Deviation mean reversion mean reverting standard deviation std.
AlexF 6 months ago. Francesco78 7 months ago. Please, describe the algorithm in words. I want to understand how it works, but for now Doctrading 7 months ago. Glen Marquis This will work as there is plenty of room for the Target before the Stop, yet the Stop would Matriciel 7 months ago. Trading may expose you to risk of loss greater than your deposits and is only suitable for experienced clients who have sufficient financial means to bear such risk.
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Within that article a slightly modified version of the original trading rules was proposed. I picked this value because it represents our risk value when scaling the number of shares to trade.
Here is a summary of the rule changes. Our increase in net profit comes at the cost of more trades which is due to the fact of lowering the stand on what we consider a viable pullback. By increasing the RSI threshold from 5 to 10 more setups qualify as a valid entry, thus we take more trades. But we also increased our look-back period for our exit calculation. Thus, we should be holding some of the trades a little longer in an attempt to make more profit.
The stop value does hurt the performance of our model. It will also help protect us from massive losing trades as seen in Stops do hurt the system, but our modified rules do continue to perform well.
The RSI indicator still appears to be a robust indicator at locating high probability entry points within the major market indices. You can modify the trigger threshold and holding period over a large range of values and still produce positive trading results.
I hope this article will give you lots of ideas to explore on your own. There is no doubt in my mind the RSI indicator can be used as a basis for a profitable trading system. Save my name, email, and website in this browser for the next time I comment. Notify me of followup comments via e-mail. You can also subscribe without commenting.