21 lines
807 B
Markdown
21 lines
807 B
Markdown
# RSI 25 / 75
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This strategy was taken from chapter 3 of [*High Probability ETF Trading*](https://moshferatu.dev/moshferatu/high-probability-etf-trading) (2009) by Larry Connors.
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## Rules
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**Long**
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1. The ETF (e.g., SPY) is trading above its 200-day moving average.
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2. If the 4-period RSI closes under 25, enter a long trade.
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3. **(Optional Aggressive Version)** Enter another long trade if at any time while in the first trade the 4-period RSI closes under 20.
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4. Exit the trade when the 4-period RSI closes above 55.
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**Short**
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1. The ETF is trading below its 200-day moving average.
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2. If the 4-period RSI is above 75, enter a short trade.
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3. **(Optional Aggressive Version)** Enter another short trade if the 4-period RSI closes above 80.
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4. Exit the trade when the 4-period RSI closes under 45.
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