22 lines
993 B
Markdown
22 lines
993 B
Markdown
# TPS
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This strategy was taken from chapter 8 of [*High Probability ETF Trading*](https://moshferatu.dev/moshferatu/high-probability-etf-trading) (2009) and [*Buy the Fear, Sell the Greed*](https://moshferatu.dev/moshferatu/buy-the-fear-sell-the-greed) (2018) by Larry Connors.
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TPS stands for:
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* **Time**
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* **Price**
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* **Scale-in**
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## Rules
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**Long**
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1. The ETF (e.g., SPY) is above its 200-day moving average.
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2. If the 2-period RSI is below 25 for 2 days in a row, enter a long trade with 10% of the total position size.
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3. If price closes lower than the initial entry price any day while in the position, enter another long trade with 20% of the total position size.
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4. If price again closes lower than the latest entry price, enter another long with 30% more of the total position size.
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5. If price yet again closes lower than the latest entry price, enter a final long with the remaining 40% of the total position size.
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6. Exit the trade(s) when the 2-period RSI closes above 70.
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