Larry Connors’ R3 Strategy (Amibroker And Tradestation code)

The strategy in plain English:

 

1. The close must be above the 200-day moving average.
2. The 2-day RSI drops three days in a row and the first day’s drop is from a reading below 60.
3. The 2-day RSI is today below 10.
4. If number 1 to 3 is true, then enter at today’s close.
5. Exit at today’s close if the 2-day RSI is above 70.

 

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Amibroker code:

 

Buy= RSI(2)<10 AND RSI(2)<Ref(RSI(2),-1) AND Ref(RSI(2),-1)<Ref(RSI(2),-2) AND Ref(RSI(2),-2)<Ref(RSI(2),-3) AND Ref(RSI(2),-3)<60 AND C>MA(C,200);
buyPrice=Close;
Sell= RSI(2)>70;
sellPrice=Close ;

 

Tradestation code:

 

if
RSI(c,2) < 10 and
RSI(c,2) < RSI(c,2)[1] and
RSI(c,2)[1] < RSI(c,2)[2] and
RSI(c,2)[2] < RSI(c,2)[3]
and RSI(c,2)[3] < 60 and 
c > average(c,200)
then Buy this bar at close;
If RSI(c,2) > 70
then sell this bar at close;

 

Disclosure: We are not financial advisors. Please do your own due diligence and investment research or consult a financial professional. All articles are our opinions – they are not suggestions to buy or sell any securities.