Using IBS together with an oscillator to catch swings at night

By 28 February, 2018Blogg, Futures, Stocks/ETF

A simple but yet effective way to trade the upward bias for the stockmarket during the night. We buy at the close and sell at the open using nothing else than RSI, IBS and a simple 200 day moving average. A very nice equity curve as you can see. Here we have tested it on the ETF SPY. However, it works well for other indexes as well as for futures.

Here is the strategy logic(Are you interested in code and workspace for Tradestation?)

  1. RSI of 10 days close should be lower than 40.
  2. Todays IBS should be lower than 0.5
    Inter bar strength is defined as follows:
    (Close – lowest) / (high – lowest)
  3. If todays close is more than 200 day MA,
    then we buy on close price.
  4. Exit at next bar on open price.