2.0 KiB
2.0 KiB
RSI PowerZones
This strategy was taken from chapter 2 of Buy the Fear, Sell the Greed (2018) by Larry Connors.
Rules
- The ETF (e.g., SPY) is trading above its 200-day simple moving average.
- If the 4-period RSI closes < 30, enter a long trade.
- Enter a second long trade if the 4-period RSI closes < 25.
- Exit the trade when the 4-period RSI closes > 55.
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)
Backtest Results
SPY
QQQ
DIA
IWM
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
