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# RSI PowerZones
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This strategy was taken from chapter 2 of [*Buy the Fear, Sell the Greed* ](https://moshferatu.dev/moshferatu/buy-the-fear-sell-the-greed ) (2018) by Larry Connors.
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## Rules
1. The ETF (e.g., SPY) is trading above its 200-day simple moving average.
2. If the 4-period RSI closes < 30 , enter a long trade .
3. Enter a second long trade if the 4-period RSI closes < 25.
4. Exit the trade when the 4-period RSI closes > 55.
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## Parameters
**RSI Period**: The period used in the RSI calculation. (Default: 4)
**RSI Smoothing**: The smoothing used in the RSI calculation. (Default: 1)
**First Entry Threshold**: The RSI value below which the first trade is entered. (Default: 30)
**Second Entry Threshold**: The RSI value below which the second trade is entered. (Default: 25)
**Exit Threshold**: The RSI value above which any trades are exited. (Default: 55)
**Long-Term Trend Period**: The period of the long-term trend as measured using a simple moving average. (Default: 200)
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## Backtest Results
### SPY
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### QQQ
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### DIA
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### IWM
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### Sector ETFs
This backtest is an aggregation of the results of the following sector ETFs:
XLB, XLC, XLE, XLF, XLI, XLK, XLP, XLU, XLV, XLY
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