1 min read · Mar 15, 2024
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Today, we reveal a fresh perspective on RSI with the Triple RSI Trading Strategy. This innovative approach harnesses the power of RSI in a new and modified form, boasting an impressive 90% win rate.
With just 83 trades since 1993, it may seem conservative, but each trade delivers a robust 1.4% gain on average.
We backtest the following modified trading rules:
- The 5-day RSI is below 30, and
- The 5-day RSI reading is down for the third day in a row, and
- The 5-day RSI reading was below 60 three trading days ago, and
- The close is higher than the 200-day moving average, and
- If 1–4 are true, then buy at the close.
- Sell at the close when the 5-day RSI crosses above 50.
We backtest SPY — the ETF that tracks S&P 500. When we put the trading rules above into Amibroker, we get the equity curve shown below.
You can find more info about this trading strategy here:
https://www.quantifiedstrategies.com/triple-rsi-trading-strategy/
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