High Probability ETF Trading: RSI Trading Strategy

Thanks for reading. Today we are going to talk about an excellent trading strategy based upon the RSI or Relative Strength Index. As much as I would love to take all of the credit for this trading strategy, the real credit goes to Larry Connors and Cesar Alvarez.

On August 31, 2017, TradingSchools.Org published are an article titled: High Probability ETF Trading: 3-Day High Low Method.

In that article, I simply coded the exact strategy that Larry and Cesar described in their book. Nothing more and nothing less. The results were excellent. Considering that the book and the strategy were published in 2009, it is remarkable that the strategy has actually outperformed the original sample period. In other words, the strategy has stood the test of time. The real-time performance is actually much better than the sample performance.

If you have spent any amount of time programming trading strategies, then you probably already know that this is a nearly impossible feat.

So, I have to give a lot of credit to Larry and Cesar for gifting the trading community with this precious public gem. And considering that the book costs only $10, its an amazing value.

Lets now jump into yet another excellent trading strategy published in the book. The title of the trading strategy is The RSI 25 and RSI 75.

Yep, you guessed it. This simple strategy is based upon one of the most common technical indicators, the Relative Strength Index. I will not be spending too much time talking about the RSI or Relative Strength Index because most traders are already familiar with this common indicator. So let’s jump into the strategy, and talk about the tools that I personally use to research the market.

Trade Navigator: my favorite research platform

All of the strategies published on TradingSchools.Org were developed and tested using Trade Navigator. They are all freely available and can be obtained by simply emailing me directly at [email protected] I am also in the process of creating a resource page where all strategies and research can be downloaded and openly discussed. Yes, I am endorsing Trade Navigator. However, I am not being paid to write nice things about them. (though I should be!)

Trade Navigator is ridiculously easy to learn. In my opinion, it is the very best trading and research platform for aspiring systems traders that have zero technical skills and no desire to learn a ridiculously difficult scripting language like C#, R, Python, or .Net.

In addition, with Trade Navigator you can pick up the phone and quickly speak with an actual human being that will bend over backward to help you code your trading strategies. A big thanks to Glen Larson for providing TradingSchools.Org readers will a free trial of the Platinum Edition of Trade Navigator. The free trial also includes the entire database of historical data.

Most “free trial” trading software includes only a snippet of usable historical data. Glen makes sure that your free trial includes the full arsenal of data: tick, bar, daily, custom. The whole enchilada.

Now that I got that “plug” out of the way, lets dive into the trading strategy.

The RSI 25 and RSI 75 ETF trading strategy: LONG SIDE

The following are the exact rules for Long signals, using only ‘daily’ bar data:

  1. The ETF is above its 200-day moving average.
  2. The 4-period RSI closes under 25. Buy on the close.
  3. Exit when the 4-period RSI closes above 55.

Test the strategy on the recommended 20 highly diversified ETF’s. List and description included below:

SymbolLinked to Complete DescriptionQuick Description
DIADiamonds TrustThe Dow Jones Industrial AverageSM (DJIA) is composed of 30 “blue-chip” U.S. stocks.
EEMiShares Emerging MarketsExposure to large and mid-sized companies in emerging markets.
EFAiShares MSCI EAFEExposure to a broad range of companies in Europe, Australia, Asia, and the Far East.
EWHiShares Hong KongExposure to large and mid-sized companies in Hong Kong.
EWJiShares JapanExposure to large and mid-sized companies in Japan.
EWTiShares TaiwanExposure to large and mid-sized companies in Taiwan.
EWZiShares BrazilExposure to large and mid-sized companies in Brazil.
FXIiShares ChinaExposure to large and mid-sized companies in China.
GLDSPDR Gold SharesThe first US traded gold ETF and the first US-listed ETF backed by a physical asset.
ILFiShares Latin AmericaExposure to large, established companies in Latin America.
IWMiShares Russell 2000Exposure to small public U.S. companies.
IYRiShares Dow US Real EstateExposure to U.S. real estate companies and REITs, which invest in real estate directly and trade like stocks.
QQQPowerShares NASDAQ 100Exposure to largest non-financial stocks on Nasdaq.
SPYSPDR SP500The S&P 500 Index is a diversifed large cap U.S. index that holds companies across all eleven GICS sectors.
XHBSPDR SP500 Home BuildersExposure to home building products and producers.
XLBSPDR MaterialsExposure to materials producers: chemical, construction, packaging, mining, paper, etc.
XLESPDR Energy SectorExposure to the energy sector of the SP500.
XLFSPDR Financial SectorExposure to insurance, banks, thrifts, RE trusts, mortgage finance, consumer finance of SP500.
XLISPDR IndustrialExposure to defense, aerospace, marine, machinery, airlines and air freight.
XLVSPDR Health CareExposure to pharmaceuticals, health care equipment, health care related produces and services.

Note: the book makes no mention of position size or stop loss. For the benefit of the audience, I have tested the strategy using a position size of $2,000, with a $500 stop loss per trade.

The following are results of just the long-only trades:

RSI Trading Strategy Long Only

What really jumps out is smoothness of the equity curve. The profit factor of 2.62, with a sample size of over 1600 trades is just awesome. What makes this strategy nice and easy is that traders with a puny trading account can easily implement the strategy without overleveraging and exposing themselves to massive risk per trade.

The RSI 25 and RSI 75 ETF trading strategy: SHORT SIDE

The following are the exact rules for Short signals, using only ‘daily’ bar data:

  1. The ETF is below its 200-day moving average.
  2. The 4-period RSI closes above 75. Sell Short on the close.
  3. Exit when the 4-period RSI closes below 45.

Test the strategy on the recommended 20 highly diversified ETF’s. Use a $2000 per trade size and a $500 stop loss.

The following are results of just the short-only trades:

RSI Short ETF Trading Strategy

RSI Short Side Equity Curve

Some readers are probably looking at the short side results and might be thinking “ugg, this doesnt look very good.” Wrong answer. For the 15 years, global asset prices have basically only gone UP. Whenever you can find a short side strategy catches the ‘Bear’ then you better take notice. The next ‘Bear’ will eventually happen, it always does. You need to have short side strategies in place. Personally, this short side equity curve looks beautiful. You simply must keep the short side as part of the arsenal.

The RSI 25 and RSI 75 ETF trading strategy: Both LONG and SHORT

The following are the results of the Long side and the Short side combined into a uniform trading strategy. This is where the ‘rubber hits the road.’

RSI Trading Strategy combined results

RSI Trading Strategy combined results equity curve

Notice the symmetrical consistency? This is an obvious edge. For the past 15+ years, this simple strategy just keeps chugging along. Catching the BULLS and the BEARS. Anyone that has been around this game for awhile knows how difficult finding this sort of trading strategy.

Wrapping things up

Thanks for making it this far! Truth be told, I can talk about trading strategies until I am blue in the face. For me, trading and investing isn’t so much about making money…its about the discovery. Its about uncovering and discovering what nobody else it seeing. Its just fun.

Will the edge continue? I believe so. The sad and pathetic truth is that most people cling to the distorted fantasy of ‘day trading’. That they can quickly buy and sell stocks in a fraction of a second, and make $1k per day. The hard and cold reality is that the only people that make money at day trading are the people selling fantasy trading educational courses, software, and expensive mentoring.

Yes, its true than some folks can pull off the day trading dream. For awhile. But over the long haul, they usually pay whatever profits to the broker executing the trades. Its a terrible mountain of pain that newbies should avoid.

Instead, focus on doing what everyone else is not doing.

  1. Stop buying expensive and useless indicators.
  2. Stop listening to trading Guru’s and day trading charlatans.
  3. Invest your time and energy into learning how to program and test trading strategies.
  4. Zone out the world. Let your intuition lead you. Validate everything with science.

Once again, thanks for reading. For those interested, you can download a free copy of Trade Navigator through this link. (No, am not being paid)

And if you are interested in purchasing the book in which this review was written, you can find the link below: (Yes, I earn .70 cents if you purchase the book)

Dont forget to leave a comment below. And for all my ‘haters’ please pick apart this strategy, I am confident that I can defend this little dandy.

 

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60 Comments on "High Probability ETF Trading: RSI Trading Strategy"

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Amitc
Guest

Read this article the other day, thought this may be of interest to some of you, as it shows some profitable algos with backtested results.
https://hackernoon.com/hacking-8-algos-161d1f28dcf3

Rob B
Guest
I hardly even come to this site anymore. What you did to expose these con artist day trading room vendors was inspirational, courageous and hopefully opened at least some folk’s eyes. As I have learned though you can lead a horse to water but you cannot make them drink. But these back tested strategies is another story. So easy to make money back testing strategies on paper. Yet most folks who then try them in live markets lose money and how many countless hedge funds and ETF have closed and lost money based on some strategy. Back testing and live… Read more »
Mkt
Guest
Did you actually read the entire post? There are 2 problems with your comment: 1) This strategy has outperformed its backtested result for 8 years. That’s very impressive and very unusual. 2) This is not a $5K “con artist” strategy, trading room, seminar, day trading strategy, questionable automated system, etc. It’s a strategy from a cheap book that’s outperformed buy-and-hold on a risk-adjusted basis. No one is claiming you’ll make 100% in a day/month/year with it. The only way to possibly get really high returns is to take way too much risk (i.e., using options or eminis in an account… Read more »
Rob B
Guest
” This strategy has outperformed its backtested result for 8 years.” As stated by Mkt, ” According to Cesar Alvarez, most of their strategies (very similar mean reversion approaches) haven’t worked as well since they introduced them. ” There are no shortage of funds that have tried every strategy under the sun. Seriously how many of these strategies that could not fail do you have to see fail before you wake up and smell the coffee. Do you remember the Black–Scholes model that could not fail? I could write a book on failed strategies. I am still waiting to meet… Read more »
Mkt
Guest
You continue to miss the point. It’s almost like you’re trying to. The strategy was released in 2009 and has been even more profitable than its backtest (from some time in the 1990s to 2008, I believe). Yes, some of the Connors/Alvarez’ strategies haven’t been AS profitable going forward, but they’ve remained profitable. Black-Scholes is an options pricing strategy…it can’t really “fail.” I think you’re mixing it up with Long-Term Capital Management. Not trying to be ugly, but you really don’t have the background or experience to be having this discussion. Learn some things about backtesting, forward-testing, various strategies (trend-following,… Read more »
Rob B
Guest
I am not missing the point at all. I understand back testing, but I also understand data mining and statistics. So let me try to explain in another way. Lets say you take 2000 strategies (I am talking about strategies like in this article not Turtle Trading) using various indicators and heck several can be using the RSI with 75 25 and 80 20 and so forth. Now back test and say 20% outperform. You forgot about the 80% that underperform and write an article or a book, “Look at these 400 amazing strategies that outperformed”. Now move fast forward… Read more »
Mkt
Guest

“Now back test and say 20% outperform. You forgot about the 80% that underperform and write an article or a book, “Look at these 400 amazing strategies that outperformed”. ”

Good system traders like Connors and Alvarez understand this and that’s why they do parameter sensitivity tests and other measures. If a 75/25 RSI system is profitable but 76/24 or 77/23 versions aren’t, you throw out your results. You clearly haven’t studied the literature in this area.

Cyn
Guest
You say, “I am still waiting to meet those rich investors that are strategy traders.” Richard Dennis, who created the group called the “Turtle Traders” was entirely a strategy trader. Most of those he trained are still pretty successful, and are using strategy trading methods. The founder of “Investor’s Business Daily”, William J. O’Neil, has some momentum strategy that he calls by the acronym CANSLIM. He has been audited and shown to have been successful with it. So Warren Buffet style value investing is not the only method to making money from the markets. A Google search should turn up… Read more »
Rob B
Guest
Actually I am a member of AAII and familiar with CANSLIM. Now in full honestly I did not and do not think of CANSLIM or the Turtles (gee when I trade I trade trend) as the same as an RSI trading strategy (which to me is trading based on an indicator similar be RSI, MACD, Stochastics or so forth), but so many funds have tried to duplicate other trading strategy and their results have been less than stellar: http://awealthofcommonsense.com/2014/08/closer-look-can-slim-performance-numbers/ But I did not think of trading like the Turtles as the same category as trading off an indicator so my… Read more »
Mike M
Guest
Rob B, I think the best point you brought up is the human factor during draw downs. Will the trader/investor have the discipline to stick with the strategy through a series of losses? Of course, that will depend on the level of sophistication of the trader and his or her knowledge of the strategy being traded. It’s impressive something so simple created a smooth upward sloping equity curve, but the ability of a trader to have the inner fortitude to stick with the strategy has and always will be a factor in long term profitability. I have seen it countless… Read more »
Rob B
Guest

Mike,

Indeed. Even if you had an indicator trading strategy that worked when forward testing with real money, it can be very difficult for one to trade. Every strategy goes through draw downs. And when you are losing money trading based on an indicator and nothing else, will ones belief in the strategy hold out? How about if the draw down last for years?

Cyn
Guest

In the fantasytradingroom dot com, we never have drawdowns. What the hell are you smoking. 🙂

Coming soon, just as I said before.

Rob B
Guest

AAII publishes results of numerous trading strategy like CANSLIM, they even have a modified CANSLIM. I use to trade the Martin Zweig one.

Mkt
Guest

Zweig, huh?
“Rob B, losing money, switching systems and getting irritated at more successful traders since the 1980s” There’s a tagline for you!

Rob B
Guest
Mkt, You are just being willfully stupid at this point and clearly making up alias to vote me down, as I can see when you post the votes are changed in a very short period. You claimed to have traded the RSI for 8 years and when I called you out to show proof of your claim you just post complete nonsense. I tried being nice and show you proof that there is no Holly Grail indicator and links to sites that have not had the success you claimed trading the RSI method you talked about. But instead you are… Read more »
Mkt
Guest

“Mkt, You are just being willfully stupid at this point and clearly making up alias to vote me down”

I did it as a joke after noticing the quirk and seeing you do it multiple times already. I can honestly care less about “likes” and affirmation, but it sure means a lot to you. That projection thing again, Robby…

Rob B
Guest
First, I commend you for admitting you manipulated the votes. But the accusation you made are false, so I must correct the record: 1) You accused me of manipulating the votes – Actual the votes prior to your manipulation was from actual readers. I have better things to do than manipulate the votes, otherwise I would do it now to undo what you did. 2) The votes mean a lot to me – I have been a long time poster here and I state my opinion, which means sometimes I post contrary views to even Emmett, so I am not… Read more »
Amitc
Guest

Hi Emmett, It has been done see link in my previous post.

Mkt
Guest
“Backtesting or as Mkt keeps commenting backtesting again is not the same as forward live test with real money.” I (and many others) actually traded Connor-Alvarez’ strategies between 2009 and 2017. So we weren’t “backtesting again.” Plus any time you test a strategy after it’s been released publicly, it’s walk-forward testing. This is system trading 101 stuff that you don’t get. A few links re: Black-Scholes don’t help you nor do they cover up your clear ignorance. As for this being “mindless RSI trading,” you clearly don’t understand it. They tested RSI and many other indicators and found the best… Read more »
Rob B
Guest
It is clear to me nothing I will say will convince you so I suggest others just do the simplest search on Connors/Alvarez’ strategies and you will see others have tested it and not had the same results Mkt claims. Here is one that was at least somewhat positive. Testing The RSI 2 Trading Strategy But as you can tell some work and some did not over time and that is how data mining works. Instead of having any type of intelligent arguments you just insult me and change my words. I said live forward testing with real money. Do… Read more »
Rob B
Guest

Just thought I would throw in another link of someone testing Conner’s RSI strategy. Again if you try enough combinations some will work. So you can now insult this person also.

http://systemtradersuccess.com/connors-2-period-rsi-update-2014/

Again showing proof of your profitability trading this strategy over an 8 year period will be powerful evidence. I cannot wait to see it.

Rob B
Guest
Maybe you mis-wrote, but your comment shows exactly what I am talking about, so I will try one last time to explain my position and if you don’t agree we will have to just agree to disagree. Of course I am still anxiously awaiting to see proof of your live money RSI trading results. Somehow I doubt that will ever happen. Anyway you wrote, “If a 75/25 RSI system is profitable but 76/24 or 77/23 versions aren’t, you throw out your results. ” That is my point, not all RSI trading parameters were profitable. Maybe they threw out if 75… Read more »
Mkt
Guest

“We have to have some ground basis to have an intelligent discussion. You have to understand basic statistics”

Projection much? You’re the one who continues to confuse backtesting and real-time walk forward testing…and still doesn’t understand parameter analysis. How about doing a bit of research before shotgun posting like an angry 13-year old.
https://www.quantconnect.com/forum/discussion/1249/do-you-trust-your-backtest–what-is-system-parameter-permutation-and-is-it-a-better-way

Rob B
Guest
Mkt, To no surprise you have said anything about showing proof of your profitability trading the RSI strategy. You are a typical BS. You are shouting from the mountain top about the RSI holly grail strategy and it is clear you have never traded the RSI strategy profitability. By the way I fully understand back testing and forward testing. And it is not the same as live trading with real money otherwise we all be rich. I honestly cannot believe I am even having this conversation about a holly grail indicator. It is like deja vu and I have been… Read more »
Mkt
Guest
Robby, 1) Your first comment on this thread was “I hardly even come to this site anymore.” Yet you flood this thread with one moronic comment after another like a bad case of diarrhea. That was your first lie. 2) There’s no such thing as a “holly grail.” You have problems with spelling, grammar and 3rd-grade level critical thinking. Work on those areas before attempting to analyze a trading system. That’s even more embarrassing than your earlier comment about Black-Scholes. 3) I have traded this strategy with real money. I’ve already stated that. I’m not going to dig up trading… Read more »
Rob B
Guest
Mkt, Just more nonsense comments by you. Nothing showing any proof or evidence of your BS claims. I have been a regular poster here from almost the beginning of this site, unlike you who just popped up out of the blue and the fact is I planned to do one post on the topic until we got into a fight, after that I have mostly been responding to your relentless nonsense. ” I’ve already stated that. I’m not going to dig up trading statements to prove it to someone as disingenuous as you.” This tells the whole story. You are… Read more »
Mkt
Guest

“As far as Black-Scholes you are clearly too dumb to even understand the model and what happened. You clearly missed the whole point of systems that cannot fail. ”

For the umpteenth time, Black-Scholes is a PRICING model. It’s not a trading system. You can use it within a trading system and it may or may not give accurate pricing. And yes, one of LTCM’s founders helped create Black-Scholes. But it didn’t fail, the strategy used by LTCM did. Here’s a recap from an options/hedging expert, and he nowhere says that BS “failed”:
https://seekingalpha.com/article/3618296-lessons-long-term-capital-management

Rob B
Guest
Man responding to you is so draining. Once again you clearly missed the point. It is one thing to come up with a mathematical model, but an entirely different thing to trade it live with actual money. That was the point I was trying to make. I give up!! You clearly will never get the point. And at this point you are just being willfully stupid. I am almost tempted to offer a CASH reward to see proof of your claims of trading the RSI strategy profitable for 8 years. I have no doubt my money would be safe. Go… Read more »
Mkt
Guest
Emmett has shown that live trading has been more profitable than backtesting. Do you really believe that no one read their first books in 2008/2009 and never traded their approaches? If they have, they would have made at least some of the trades in the forward test. I first read Connors/Alvarez in ’08 and have traded their methods along with many other things. I didn’t dedicate an account to Connors/Alvarez and have no reason to spend hours isolating their trades on old statements. You keep referring to me, Emmett and others as BS artists, but I don’t make a dime… Read more »
Rob B
Guest
Mkt, Actually I claimed you were a BS artist based on your claims and comments and nasty response to me. You talked about the S&P and its performance year to date using the RSI. I marked up a chart and will get to that in a little bit. I like most traders have traded various strategies and I talk to other traders who have traded various strategies and anyone that has actually traded strategies do not comment as you have making claims and not backing them up and essentially stating the RSI is the Holly Grail, which it is not.… Read more »
RSI 2017.jpg
Rob B
Guest
” I’m not selling anything and have no reason to lie. ” No one know what your reasons are. Maybe you work for an indicator Software place, who knows. Maybe you are completely delusional. What I do know is you claim to have traded the RSI for 8 years now and yet cannot show any proof of that claim. And now you say: ” have no reason to spend hours isolating their trades on old statements” That is not what you said before. You are now saying the RSI was so profitable you stopped trading it. You are nothing but… Read more »
Mkt
Guest

Exactly.

Rob B
Guest
Mkt, You are so dump you cannot even comprehend the statistical point I am making. I was giving examples of why taking some published strategy and back testing and back testing again or even sim forward testing does not equal live forward testing with real money. If it did every fund and individual out there would be doing it and making amazing returns. I even provided a link where they back tested a strategy that a fund implemented in a live market and yet the back testing results looked great, but the live testing was piss poor. I give up… Read more »
Mkt
Guest
“I even provided a link where they back tested a strategy that a fund implemented in a live market” You posted a different system by the same authors. Yes, it had a rough patch for a few years. Guess what…even your heroes like Warren Buffett have multi-year losses and have failed to beat buy-and-hold for periods of 7+ years. If you actually knew the data and literature better, you’d know that already. You can cherry pick bad periods in any strategy. The bottom line is that many of us have known about short-term mean reversion strategies like this for a… Read more »
Rob B
Guest
Mkt, This is Rob B II not that ahole Rob B. Man you are right on the money. Stochastics and MACD and all those other indicators are fraud, but RSI is the real deal. Shhh! We don’t want others to know about this Holly Grail indicator otherwise every fund and individual on the planet would be trading it. I cannot believe the nerve of Rob B stating back testing does not equal live testing. What a moron he is. And then he has the nerve to show links to sites that prove his point and that the RSI did not… Read more »
Rob B
Guest
Once again you just post nonsense: “Warren Buffett have multi-year losses” You cannot compare long term investing in dividend yielding stocks to blindly trading some indicator. I have already explained why most folks will not be able to hold during draw downs when blindly trading an indicator. Seriously did you not understand my post or what. Buffett can live off the dividend during down times and he understand why he bought the company. He can go visit the company and see how it is doing. He does not worry about the price of the company as that is effected by… Read more »
Mkt
Guest

“I have already explained why most folks will not be able to hold during draw downs when blindly trading an indicator.”

That’s simply your opinion, but study after study has shown that investors abandon buy-and-hold near market lows. So it’s no panacea either.

Touché, snowflake.

Rob B
Guest

We finally agree on something, investing is not easy. If you had been as honest about your RSI trading strategy we might have gotten off to a better start.

BTW, when you only support is long term troll DTCHUM you know you are in trouble.

Rob B
Guest
Mkt, Impossible to have an intelligent argument with someone that just makes up facts. I never said I messed around with CANSLIM. In fact your post are 99% fact free and clearly you completed missed my argument about stochastic and MACD. You seriously cannot be this dumb. I used that as examples of why BACKTESTING DOES NOT EQUAL LIVE REAL MONEY TESTING!!! Everything else you stated are your words not mine and just pure made up nonsense. You continue to lie and BS saying you have traded this method for 8 years yet provide no proof, just excuses. That is… Read more »
Mkt
Guest

I haven’t been to the site lately, but saw one comment here. I see little Robby B has been fiddling around with the votes again…It’s pretty sad that a grown man is that worried about other people’s approval. Grow up, dude.

Mkt
Guest

You have some serious anger issues. I’d guess that being a failed trader for many years is probably a big part of it. I’ve clearly shown I’m the one who understands the difference between backtesting/live trading and other industry standards (parameter sensitivity, realistic expectations of drawdowns, etc.).

I wish you the best….and go get professional help if you need it…sounds like you might.

dtchum
Guest

Hey Mkt – My advice is to ignore the irrelevant troll Rob B. As you can see, when he does not have a leg to stand on, he starts hurling insults, calling you delusional, etc. Everyone else is wrong, except him. A psychologist would find him an excellent case study for the DSM. Most of us who have been here for a while have learnt to just ignore him. You simply cannot win an argument with a troll such as he.

Rob B
Guest

What a shocker the long term troll DTCHUM once again shows up.

So predictable. Not a single bit of useful information about the topic or about using the RSI. I doubt you even read the thread, know what I have been debating about or have any clue about the RSI. Just any opportunity to take cheap shots at me about a topic you have no clue about.

Man, you are truly the text book case of a useless troll.

Mkt
Guest

Thanks, dtchum. His last post was a great example. He’s grasping for straws, trying to show that it may occasionally be hard to implement this strategy. In reality, this barely ever happens, and there are several workarounds. However, it’s easier to make excuses and say something doesn’t work–than admit you’re wrong.

I guess he can simply rely on buy-and-hope…great timing since most valuations are at or near record highs. The non-stop bull market since 2009 won’t continue forever, and traders will soon have the edge again–at least those who use disciplined, tested strategies.

Rob B
Guest

Actually I was quite civil until you started to post any insults you could just like above. You claim to have traded the RSI strategy for 8 years and yet refuse to show any evidence of your claim. Instead you deflect by just making wild accusations.

And as for you other statement you have not show anything and clearly have no understanding that backtesting does not equal live real money forward testing.

Mkt
Guest

“Rob is great at pushing buttons, ”

Or as the younger generation says, making people get “triggered.” Good advice, BTW. Thanks.

Rob B
Guest

Yes Mkt I do not mindless go along with group think. I actual think for myself and that means sometimes I disagree with even Emmett. And in this case certainly disagree with you and you unsubstantiated claims and wild accusations.

Bob
Guest

I really appreciate your comments Rob. They make a lot of sense. When testing strategies it seems an almost unconscious temptation to cherry pick and not even realize it.

martin
Guest

Hi Emmett

Interesting! But you should consider to add some sort of room for slippage and comissions!

Joe
Guest

Hi Emmet. Thanks for the article. Have u tested the strategy with real live results? If so how do they match up to back tested results? How would commissions factor in to results? I love your site! Keep up the great work!

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