RSI is mostly used as a reversal or contrarian indicator. In most stock markets, this has worked really well over the last 30 years. But what if we flip it and use it as a momentum indicator instead to make a RSI momentum strategy? Can we make money that way? We can use RSI as…
Does the RSI Indicator work on crypto or Bitcoin? Bitcoin and other cryptos are attracting many traders and new investors, and the crypto daily volume is rising significantly, probably draining resources from the more traditional stock trading arena. The crypto market is a completely new market that is quite different from the traditional equity markets….
Weekly RSI vs daily RSI – what is best? This is a bit like comparing apples to oranges. It might be the same indicator, but RSI can deliver substantially different risk and reward payoffs in different time frames. Risk and reward are matters you can only answer yourself through backtesting. If you are a swing…
Cutler’s RSI including backtest The RSI is a very popular trading indicator among different security traders. But there are other variations of the RSI indicator. One of them is Cutler‘s RSI. You may be wondering what it is, and in this article, we provide you with a description and how it performs in backtests. Cutler’s…
We have previously published an article on using RSI on SPY (relative strength index). The RSI has proven to be a valuable indicator/tool for mean reversion in the main stock indices. Today we present an RSI trading strategy. In this article, we look at how the RSI performs on QQQ – an RSI mean reversion…
Below is a simple and easy trading strategy to implement in SPY or the S&P 500: The classical mean reversion strategy in the S&P 500 In plain English the strategy reads like this: Trading Rules [/am4show] The equity curve since January 2000 looks like this (starting with 100 000 in equity and allocating 100% of…
Below is a simple and easy trading strategy to implement in QQQ. Let’s go straight to the trading rules: Trading Rules [/am4show] The equity curve since January 2000 looks like this (starting with 100 000 in equity and allocating 100% of equity to every trade, ie. compounding, but taxes are not deducted): Worth noting is…
SPY is very mean revertive and RSI is a mean revertive indicator. Does this mean that RSI works on SPY? In this article, we test an RSI SPY trading strategy. It turns out that our hypothesis is correct: the RSI works well on SPY. Even better, we improve the strategy by adding one extra indicator….
The strategy published in this article has similarities with Larry Connors’ trading strategy called the double 7. Connors’ strategy is very simple with just two rules. The fewer rules, the better, because less probability of curve fitting. The strategy is based on 7 days low (and high for exit), but in my testing, it seems…
S&P 500 has historically a strong tendency to revert to the mean. I’m looking to find a way to fade the gap. My research has indicated that fading the gap is best after a strong move in either direction. Thus: The high and low divergence day trading strategy Here are the criteria for a reasonable…
