RSI-2 Method


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Hello. I was wondering who else uses the RSI-2 method?

I made a strategy of mine own similar to Connor's system. However, I use a longer period RSI rather than a EMA or ADX.

I have a 2-period Wilder's RSI with oversold at 5 and overbought at 95. And I have a 14-period Wilder's RSI with oversold at 30 and overbought at 70.

My entries are basically when both give a correlating signal, I enter on the open of the very next candle. Then every exit/opposite signal I get, I move my stop up to the 1 tick below the low of that candle. My initial risk is a 20 period average of high-low, or if I'm on a significant swing low or low of day, I'll risk 10-20 ticks.

To pick stocks, I use SMB's filter settings. I use Finviz for my screener.

Stock Price >$20
Average Daily Volume >1M
Average True Range >1
Relative Volume >2 (>3 during slow season)

I run the screener every morning and update my watchlist, as new stocks show up and disappear.

I haven't kept any backtesting results, but I've been profitable. The only mistakes were because of my own risk management. I plan to begin trading /CL with this method and will track results. I mostly trade on the 1 minute chart. Larger time frames entitle more initial risk.

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