RSI-5 Ftse index trading system

[Chipmunk]

Stops are good. yes they will limit the amount you can earn but you will sleep better at night and you can leverage more cause your loss is more likely to be limited.
Has anyone checked out RSI 5 on a time basis less than 1 day?
Chipmunk

I thought I'd put something on the board to generate a bit of discussion here. - I took the original idea from TMF US mechanical boards and amended it a bit.

This is a FTSE index trading system - trading the cash index (all transactions take place at the end of the day when SB companies get pretty close).

It generated 4,575 points in just over 8 years, with a win ratio of 90.38%!

The rules:

1. Go long when the 5 day RSI closes below 35.
2. If the price falls 2% from initial entry then average down.
3. Average down a maximum of 3 times.
4. Exit when the 5 day RSI closes above 55.
5. Don't trade if the price is below the 100 day simple moving average of closing prices.
6. No stops - I need help with this 'cause whenever I put in stops it wipes the performance!

Although it has a fantastic win ratio, the intra-trade drawdowns need some nerve to follow. However, I have yet to see a position/swing trading system that doesn't have some fairly steep draws.

Anyway - comments welcome.

regards

Ben

 

[Hittfeld]

How about a successful hourly RSI system?

http://www.trade2win.com/boards/free-systems/16850-noconas-hourly-rsi-system.html

Regards

Hittfeld

 

[RunTheNumbers]

Hi Ben,

Stumbled across this thread when searching for traders near me.

Did you ever try your system in real life? I had a similar system once, but the slippage between EOD/theoretical prices and CapSpreads'/real prices was just too great...


Yours,

Steve

Yes, I have traded this very successfully over the last few years. I did add one thing though, I introduced a filter. I do not trade if the S&P500 market price is below either the 12 week moving average or the 20 week moving average. This seems to keep the system out of any difficult down patches quite successfully.

I trade this using a UK spreadbetting account on the S&P500 daily. The spread is 4 points and because it is an EOD system the slippage is manageable.

Anyway, it's been a long time since I visited this forum and it's interesting to see my old system is still on the boards. LOL

 

[Hittfeld]

RunTheNumbers, thanks for the original system, thanks for the revision and thanks for coming back. I just wonder if there is any special reason to run the system on SP500, not FTSE. Have you ever tried it on other indices ?

Thanks

 

[Joshyboy222]

I thought I'd put something on the board to generate a bit of discussion here. - I took the original idea from TMF US mechanical boards and amended it a bit.

This is a FTSE index trading system - trading the cash index (all transactions take place at the end of the day when SB companies get pretty close).

It generated 4,575 points in just over 8 years, with a win ratio of 90.38%!

The rules:

1. Go long when the 5 day RSI closes below 35.
2. If the price falls 2% from initial entry then average down.
3. Average down a maximum of 3 times.
4. Exit when the 5 day RSI closes above 55.
5. Don't trade if the price is below the 100 day simple moving average of closing prices.
6. No stops - I need help with this 'cause whenever I put in stops it wipes the performance!

Although it has a fantastic win ratio, the intra-trade drawdowns need some nerve to follow. However, I have yet to see a position/swing trading system that doesn't have some fairly steep draws.

Anyway - comments welcome.

regards

Ben

Hi I'm new to trading is there any way you could write it out for me in the most simplist form lol

Regards