Click here to Login








Trading Rules based on the Relative Strength Index - RSI Indicator

by QuantShare, 2181 days ago
Share |






The Relative Strength Index or RSI is a normalized momentum oscillator created by J. Welles Wilder. The Relative Strength Index oscillates between 0 and 100. When the RSI is above the 70 area, it is considered overbought and when it is below the 30 area, it is considered oversold. Besides this basic rule, the Relative Strength Index indicator can be used to create much more rules; we can compare it to its previous values, we can analyze its moving average, check its volatility, its distance from its previous highs and lows...

The current list includes more than 5000 trading rules based on the Relative Strength Index. The default look-back period was used (14 bars), as well as the 7-bar and 2-bar periods.
The list can be used to test additional buy/short rules in an existing trading system or it can be passed to the genetic optimizer to generate new profitable trading strategies.

Example of trading rules:
- RSI is higher than its previous bar value
- RSI increased at least once during the previous two trading bars
- RSI increased four bars in a row
- RSI is making a new 50-Bar high
- Linear regression of the RSI indicator is higher than 70
- Volatility of the RSI series is reaching a new 30-Bar high
- Percent Rank of RSI is higher than 80%
- RSI crosses above its 10-Bar moving average
- RSI crosses below its 30-Bar simple moving average
- 10-Bar SMA of the RSI crosses below the 60-Bar SMA

Some rules require the PercentRank indicator. This technical indicator is available here: Percentile - Percent Rank of a Trading Indicator.

To analyze individual trading rules, click on "Analyze the list" in the "Rules Manager", select your symbols, start & end dates, output(s) and add a fixed rule.
The fixed rule I use in all the quantitative researches I perform is:
close > 2 and close*sma(volume, 5) > 50000

Interpretation: Stock price must be higher than $2 and the average trading volume per day must be higher than $50,000. This prevents the analyzer/backtester from buying/selling illiquid stocks and it provides me with stronger results.


Share This ->
Share |


You have to log in to bookmark this object
What is this?




Type: List of Rules

Object ID: 983


Country:
All

Market: All

Style:
Technical Analysis

Reviews
You must log in first

Join now
and get instant access for free to the trading software, the Sharing server and the Social network website.
Click here


Related objects
Show All
LSE - UK - EOD data (by Patrick Fonce, uploaded several months ago)
No notes

Rate an item Rate an item Rate an item Rate an item Rate an item Number of downloads 647 Notes Report an item
Trading Rules using Trend Indicators (by QuantShare, uploaded several months ago)
No notes

Rate an item Rate an item Rate an item Rate an item Rate an item Number of downloads 48 Notes Report an item
Price Channel Position (by swalk10, uploaded several months ago)
No notes

Rate an item Rate an item Rate an item Rate an item Rate an item Number of downloads 64 Notes Report an item
Intraday Quotes for Major Stock Exchanges (by QuantShare, uploaded several months ago)
No notes

Rate an item Rate an item Rate an item Rate an item Rate an item Number of downloads 2619 Notes Report an item
Multiple Time Frames Trading System - Price / Moving Average Crossover (by QuantShare, uploaded several months ago)
No notes

Rate an item Rate an item Rate an item Rate an item Rate an item Number of downloads 146 Notes Report an item
Ascending, Descending and Symmetrical Triangle Chart Patterns (by QuantShare, uploaded several months ago)
No notes

Rate an item Rate an item Rate an item Rate an item Rate an item Number of downloads 96 Notes Report an item
Pivot Point Breakout Scanner (by The trader, uploaded several months ago)
No notes

Rate an item Rate an item Rate an item Rate an item Rate an item Number of downloads 100 Notes Report an item
Number of reviews
Click to add a review
Average rate
Click to rate this item
Number of times this object was downloaded
Number of rates the current object received
Report an object
if you can't run it for example or if it contains errors
Click to report this object

Technical Analysis


Fundamental Analysis



Random Blog Posts

Creating Stock & Market Short Interest Ratios using Historical Short Sale Data

Select the best ETFs combination to maximize your return and reduce your investment risk

How to turn any ordinary trading strategy into a very profitable one

Charting & Scripts - Manage stock charts using the global script

Trading System: Buy Stocks based on their Sharpe Ratio Rank

Creating and managing notes for your stocks

Create a Trading Strategy using Portfolio123 Ranking Systems

How to Quickly Create Fundamental Scans

Show All

Number of reviews
Click to add a review
Average rate
Click to rate this item
Number of times this object was downloaded
Number of rates the current object received
Report an object
if you can't run it for example or if it contains errors
Click to report this object






QuantShare
Product
QuantShare
Features
Create an account
Affiliate Program
Support
Contact Us
Trading Forum
How-to Lessons
Manual
Company
About Us
Privacy
Terms of Use

Copyright 2017 QuantShare.com
Social Media
Follow us on Facebook
Twitter Follow us on Twitter
Google+
Follow us on Google+
RSS Trading Items



Trading financial instruments, including foreign exchange on margin, carries a high level of risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.