# R3

This strategy was taken from chapter 4 of [*High Probability ETF Trading*](https://moshferatu.dev/moshferatu/high-probability-etf-trading) (2009) by Larry Connors.

## Rules

**Long**

1. The ETF (e.g., SPY) is above its 200-day moving average.
2. The 2-period RSI drops 3 days in a row and the first day's drop is < 60.
3. If the 2-period RSI closes < 10, enter a long trade.
4. **(Optional Aggressive Version)** Enter a second long if price closes lower than the initial entry price at any point during the first trade.
5. Exit the trade when the 2-period RSI closes > 70.

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