Dr Manhattan 1 year ago. Normalized bars mean reversion mean reverting normalized.

Can RSI Indicator and 2 MAs lead a trader to profits?

Maxime Baudin Intresting, thank you! Nicolas 2 years ago. Nicolas Please open a new topic with the code in forum. Nicolas Il faut simplement l'appliquer sur le prix. Par contre d Vonasi 2 years ago. Trending and Mean Reversal Simulation filter market sentiment mean reversal mean reversion simulated trades simulation Trend Filter trend trading Trending.

Vonasi 3 years ago. Floating Mean Reversal Equity Indicator equity curve mean reversal mean reversion simulated trades. Nicolas 3 years 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?

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An upper l I need als Mean MA Deviation mean reversion mean reverting standard deviation std. Maxime Baudin Thanks! Francesco78 3 years ago. Please, describe the algorithm in words. I want to understand how it works, but for now Madrosat Bonjour Nicolas la formule du stop loss est elle vraiment valable??

RSI + SMA + MACD = a Strategy for Any Market

Francesco78 snucke the results are not the same because the pictures refers to a few years ago. I am no Nicolas 4 years ago.

Nicolas No sorry, please use this file instead into a prorealtime trading platform. It opens in its own pane rather than overlaid on the chart There were seven signals over this month period, four bullish and three bearish. Of the four bullish signals, DIA moved higher three of the four times, which means these signals could have been profitable.

Of the three bearish signals, DIA moved lower only once 5.

The strategy in detail

As far as a gain or loss, it would depend on the levels used for the stop-loss and profit taking. There were at least ten buy signals during this period. It would have been difficult to prevent losses on the first five because AAPL zigzagged lower from late February to mid-June Looking at this chart, it is clear that many of these signals were early.

In other words, Apple moved to new lows after the initial buy signal and then rebounded. As with all trading strategies, it is important to study the signals and look for ways to improve the results.

The key is to avoid curve fitting, which decreases the odds of success in the future. As noted above, the RSI 2 strategy can be early because the existing moves often continue after the signal. In an effort to remedy this situation, chartists should look for some sort of clue that prices have actually reversed after RSI 2 hits its extreme. This could involve candlestick analysis, intraday chart patterns, other momentum oscillators or even tweaks to RSI 2.

RSI 2 surges above 95 because prices are moving up. Establishing a short position while prices are moving up can be dangerous. Chartists could filter this signal by waiting for RSI 2 to move back below its centerline This would signal that prices have indeed made some sort of short-term turn. The chart above shows Google with RSI 2 signals filtered with a cross of the centerline There were good signals and bad signals. Also, note that gaps can wreak havoc on trades. The mid-July, mid-October and mid-January gaps occurred during earnings season. The RSI 2 strategy gives traders a chance to partake in an ongoing trend.

Connors states that traders should buy pullbacks, not breakouts. Results: Figure Data: 36 years since Loss Ratio.

Algo Trader RSI 3/80/20 Strategy

The final picture shows sensitivity of Equity Curve. Table 1 Specification: Trading Strategy. Connors, L.