Last Updated on 14 October, 2021 by Samuelsson
Tweaking the RSI Indicator
What if you tweak the RSI indicator a bit? That’s the question we asked ourselves when coming up with this edge, and by using unconventional methods we managed to find something that works on the SPY (S&P 500).
A Closer Look
This edge trades the S&P 500 through the SPY. However, it should work well on other securities that track the same index as well.
The percentage of winning trades is high, close to 80%, which is common with mean-reverting strategies. It’s also very simple since it only consists of one buying conditions. In other words, there is plenty of room for traders to add their own filters or exits, to maximize performance.
The edge is composed of:
- A Tweaked RSI
- A Tweaked RSI Exit
- A Price Pattern Exit
All edges come with open Tradestation code in Easy language. An ELD file and workspace.
How Does It Work?
Using widespread indicators like the RSI can, as we show in this edge, produce some promising results. This is how the edge works:You need to be a Silver member to have access to this post.