26 lines
1002 B
Markdown
26 lines
1002 B
Markdown
# 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
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1. The ETF (e.g., SPY) is trading above its 200-day simple moving average.
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2. If the 4-period RSI closes < 30, enter a long trade.
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3. Enter a second long trade if the 4-period RSI closes < 25.
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4. Exit the trade when the 4-period RSI closes > 55.
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## Parameters
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**RSI Period**: The period used in the RSI calculation. (Default: 4)
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**RSI Smoothing**: The smoothing used in the RSI calculation. (Default: 1)
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**First Entry Threshold**: The RSI value below which the first trade is entered. (Default: 30)
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**Second Entry Threshold**: The RSI value below which the second trade is entered. (Default: 25)
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**Exit Threshold**: The RSI value above which any trades are exited. (Default: 55)
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**Long-Term Trend Period**: The period of the long-term trend as measured using a simple moving average. (Default: 200)
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