# TRIN This strategy was taken from chapter 12 of [*Short Term Trading Strategies That Work*](https://moshferatu.dev/moshferatu/short-term-trading-strategies-that-work) (2008) by Larry Connors. It is based on the short-term trading index (TRIN), also known as the Arms index. The formula for calculating the TRIN of an index is as follows: ``` TRIN = (Advancing Stocks / Declining Stocks) / (Advancing Volume / Declining Volume) ``` Typically, a TRIN reading below 1 corresponds to rising prices whereas a reading above 1 corresponds to declining prices. ## Rules 1. The asset (e.g., SPY) is above its 200-day moving average. 2. The 2-period RSI is below 50. 3. If TRIN closes above 1 for 3 consecutive days, enter a long trade. 4. Exit the trade when the 2-period RSI is above 65. ## Parameters **Long-Term Trend Period**: The period of the long-term trend as measured using a simple moving average. (Default: 200) **RSI Period**: The period used in the RSI calculation. (Default: 2) **RSI Smoothing**: The smoothing used in the RSI calculation. (Default: 1, no smoothing) **RSI Entry Threshold**: The RSI value below which trades are allowed to be entered. (Default: 50) **RSI Exit Threshold**: The RSI value above which trades are exited. (Default: 65) **TRIN Entry Threshold**: The TRIN value above which trades are allowed to be entered. (Default: 1.0) **Days Above Threshold**: The number of days in a row that the TRIN must be above the entry threshold in order to enter a trade. (Default: 3) ## Backtest Results ### SPY ![SPY Analysis](https://static.moshington.com/images/strategies/trin/spy-analysis.png) ![SPY Summary](https://static.moshington.com/images/strategies/trin/spy-summary.png) ### QQQ ![QQQ Analysis](https://static.moshington.com/images/strategies/trin/qqq-analysis.png) ![QQQ Summary](https://static.moshington.com/images/strategies/trin/qqq-summary.png) ### DIA ![DIA Analysis](https://static.moshington.com/images/strategies/trin/dia-analysis.png) ![DIA Summary](https://static.moshington.com/images/strategies/trin/dia-summary.png) ### XLE ![XLE Analysis](https://static.moshington.com/images/strategies/trin/xle-analysis.png) ![XLE Summary](https://static.moshington.com/images/strategies/trin/xle-summary.png) ### XLF ![XLF Analysis](https://static.moshington.com/images/strategies/trin/xlf-analysis.png) ![XLF Summary](https://static.moshington.com/images/strategies/trin/xlf-summary.png) ---