StockFetcher Forums · Filter Exchange · RSI(2) - The Little Indicator That Could<< 1 ... 14 15 16 17 18 ... 26 >>Post Follow-up
roca1018
41 posts
msg #35400
Ignore roca1018
3/20/2005 8:18:36 AM

Rumpled One,

I backtested the filter between 1 and 30 days. While some did advance the overall numbers make the needle in the haystack claim dubiuos. If the scan
generates 20 picks, how is one to determine how to pare the list?

Regards,

Rich


judgetrade
107 posts
msg #35401
Ignore judgetrade
3/20/2005 3:41:50 PM

Hi, I have backtestet the following screen and I have never seen better results by just buying all the stocks that match and hold for 4 Days:

show stocks where count(RSI(2) 1 day ago above 99,60)
is above 0 and RSI(2) is below 5 and average volume(10)
above 50000 and CLOSE ABOVE .20 and close
more than 10% below close 1 day ago

A lot in the performance measures are due to positive gaps from the evening the screen runs and the next morning, which I would like to catch!
What I would like to be able to do is run this screen realtime or neartime (15 min before close!). Is there a possibility to do this?

Thank you

Andreas


TheRumpledOne
6,359 posts
msg #35402
Ignore TheRumpledOne
3/20/2005 11:35:36 PM

Judge...

You can get a real time service like tradestation and use their radar screen and screen for rsi(2) < 1 in real time (I have this).

Or you can use www.prophet.net (free version), set up a watch list, and scroll down a 10 day/60 min chart looking for RED CANDLES and RSI(2) lows... to find the ones that just may pop the next morning (I have this, too).

Remember, trading's a guessing game.... ANYTHING CAN HAPPEN.

MAY ALL YOUR FILLS BE COMPLETE.


marine2
829 posts
msg #35416
Ignore marine2
3/23/2005 2:10:27 AM

Lol, sounds like a buy-out statement on that one TheRumpledOne. But it's all cool.

Marine2


TheRumpledOne
6,359 posts
msg #35422
Ignore TheRumpledOne
3/23/2005 8:13:51 AM

Those who doubt RSI(2)... did you see what HOFF did after daily RSI(2) = .232 on Friday?

HOFF closed at .46 on Friday, opened at .40 on Monday and peaked at .73 on Tuesday.

Hey Marine2, what's the percent gain?

RSI(2) SPEAKS FOR ITSELF.

MAY ALL YOUR FILLS BE COMPLETE.


judgetrade
107 posts
msg #35427
Ignore judgetrade
3/23/2005 1:33:51 PM

Thank you for answering my question TheRumpledOne! I saw HOFF!

Since I am a system trader, how can I trade the following in realtime:

show stocks where count(RSI(2) 1 day ago above 99,60)
is above 0 and RSI(2) is below 5 and average volume(10)
above 50000 and CLOSE ABOVE .20 and close
more than 10% below close 1 day ago

You get a list and you buy only the stocks that are in the red at market close. I backtested this idea with the following an the results are great:

show stocks where count(RSI(2) 2 day ago above 99,60)
is above 0 and RSI(2) 1 day ago is below 5 and average volume(10)
above 50000 and CLOSE ABOVE .20 and close one day ago
more than 10% below close 2 day ago
and close more then 5% below close 1 day ago

System rules: run the first screen, wait for close, buy the stocks that are
in the red. For every day allocate 10.000, if there are 10 Stocks divide by 10,
if there are 4 divide by 4. Maximum investment is 2500, if there are less then 4 Stocks. Hold for 4 Days, Stop Loss is 25% per Position.

I calculated this with Excel and I never got a better capital curve.
I will test it fom 1997 until 2005, since this can not be automated, this
will be a lot of work, but I think it will be great!





wallman
299 posts
msg #35431
Ignore wallman
3/23/2005 7:37:07 PM

Marine,Av and I talk daily on IM and in my chatroom, HE CALLED HOFF AT ABSOLUTE BOTTOM! i know you doubt him /RSI2,i KNOW the real deal,he's right,nothing more needs to be said,you either believe or you don't,his stuff is free,if you doubt it just use your 100+ filters and make it as hard as possible on yourself


TheRumpledOne
6,359 posts
msg #35432
Ignore TheRumpledOne
3/23/2005 7:51:03 PM

Judge.. not sure what you are asking...

I do believe I have posted just about all there is to say about rsi(2).

It is simple... It works.

The filter selects the stocks but you have to trade them.

Just wait for green. That's all there is.

If you buy when they are still red, don't blame rsi(2).

MAY ALL YOUR FILLS BE COMPLETE.




TheRumpledOne
6,359 posts
msg #35433
Ignore TheRumpledOne
3/23/2005 8:09:05 PM

Hey Judge.. instead of backtesting something that we know works... spend that time on this:



Optionetics Articles

MARKET INSIGHT: Money Management

http://www.optionetics.com/articles/article_full.asp?idNo=8558

By Jody Osborne, Optionetics.com
6/19/2003 7:30:00 AM


We can find a lot of information about trading in books and on the Web, but most of it details how to pick stocks and what strategies that are available using options. However, one very important aspect of trading is often overlooked and this is money management. I often get the question, “Why did such and such stock move against us when everything was pointing at a good trade?” Trading is not an exact science; if it were, there would not be a market because everyone would know how to win. In sports, a team can often play a great game and still lose. The same thing can occur in trading. We can have all the odds in our favor, yet the stock will move against us.

Despite the fact that many trades will lose money, if we manage our trades appropriately, we can still make nice profits. In fact, we can make money trading even if our winning percentage is below 50 percent. In just a moment, I am going to discuss how this is possible. However, before we go into some money management techniques, we need to realize that we are going to have losing trades. Even the best baseball team doesn’t win every game. In fact, a 60 percent winning percentage is considered great in the sport. This is similar to the options game, where a person who wins 60 percent of their trades should come out well ahead of the game.

Too many traders enter a trade without any idea of when they will get out. Not only should we have a profit exit set, but we should also have a loss target set. With some strategies, we might be willing to risk the entire capital used, while others we might have a mental stop loss in place. Regardless of where your targets reside, it is important to have them ahead of entering the trade. This is because emotion will dominate our trading decisions if we don’t have an idea of what to do ahead of time.

Now, just to show that we don’t have to be right every trade, let’s take a look at a table showing the profits made using various winning percentages. There is an old saying that states “Let your profits run and cut your losses short.” It is this basis that gives us the following table.

Winning % Ave Win Tot Win Ave Loss Tot Loss # of Trades Profit

40% $500 $4,000 $250 $3,000 20 $1,000
50% $500 $5,000 $250 $2,500 20 $2,500
60% $500 $6,000 $250 $2,000 20 $4,000

Table 1: Profits Using Various Winning Percentages

Notice that by having a 2-to-1 win to loss ratio, we would have profits even if we only win 40 percent of the time. It is also important that we allocate an equal amount of capital to each trade. Many traders will put large amounts of money into trades they think are the best. However, if this trade doesn’t pan out, it can erase the gains made from other trades.

There are various strategies to manage your trading account, but the key is to have a plan. The idea is to “plan your trade and trade your plan.” This means knowing ahead of time where our exits lay and keeping a good record of the trades we have made in the past. Though we can’t win every time, we can learn to manage our money better so that the losses aren’t a problem for the long-term performance of our trading account.


Jody Osborne
Senior Writer & Options Strategist
Optionetics.com ~ Your Options Education Site
Visit Jody's Forum





marine2
829 posts
msg #35438
Ignore marine2
3/23/2005 11:29:26 PM

Listen, I have never said I don't believe in what your saying concerning your beloved RSI(2) filtering system. I just wanted you believers to convince everyone else in here. So far, you have done your very best in that.

I do have 3 different filters that use the RSI(2) theory but with different conditions set within each to control the number of stocks each finds ripe for possible trading.

I enjoy testing you guys and so far you believers haven't wavered in your loyalty to your convictions.

Wishing you all tons of successful trades and many years of healthy living.

Marine2


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