RSI-2 Method

drtro

Active member
216 21
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.

2le6yxd.png
 
  • Like
Reactions: KRL2019
 
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock