To learn how the software works, I've been trying to recreate some of my StockFetcher filters using Wealth-Lab's click and drag system coder.
Tonight's experiment involved recreating the RSI(2) strategy and applying it to the Nasdaq 100 stocks. However, instead of limiting the system to long only, I combined the RSI(2) long strategy with an RSI(2) short strategy, then ran a two-year backtest.
The rules of the system are simple:
Go long if price is above the MA(50) and RSI(2) is less than 5Exit when RSI(2) is above 70 or an 8 percent stop loss is hitGo short if price is below the MA(50) and RSI(2) is greater than 95Cover when RSI(2) is less than 30 or an 8 percent stop loss is hitStarting equity is $100,000 and position sizing is $5,000 per trade
Here are the results:
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5 comments:
This looks like a very sweet system. 70% win rate and 15% annualized returns. Nice.
I recently came across your blog and have been reading along. I thought I would leave my first comment. I don't know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.
Deborah
Term Life Insurance
Where did you go Dogwood??? Your fans need your insights!!!
(I am aware I used too much punctuation, but in times such as these too much is often not enough).
I'm still here. Been busy with a home remodeling project so not much time for blogging. I'll get busy here shortly.
Thanks for the nudge!
Much of your approach can be modeled in Trade-Ideas PRO, backtested with our event-based tool, The OddsMaker, and then even automated if desired. This isnt a pitch, but an invitation to see if I cant help you personally model what you are looking for. Following you now . . . Good luck on the journey
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