An example of a trading system using the RSI and Stochastics indicators

This simple trading system uses both the RSI and Stochastics indicators. Based upon the stochastic trading system example, but with addition logic on the entry. The system produces a lot less trades than Stochastic system (albeit with a higher winning probability).

As this trading system produces so few trades on a single instrument, it should be backtested against a portfolio containing more than 30 symbols, which gives more statistical relevance to the results.

	This trading system is included in the example trading systems that come with the free 30 day trial EOD version of Seer. Once you have filled out this form simply download Seer to try this trading system.

#RSI and Stochastics system
#
#Basic Stochastics system, but with additional rule:
#The rsi must be less than 30.

#Get the Stochastics columns
my ($k,$d)=SS(5,3,3);

unless (Position) {
  #Buy if the %k crosses above %d and if %k is less than 20
  BuyOpen if Crossover($k,$d) and Today($k)<20 and Today(RSI(14))<30;
}
else {
  #Sell if the %k crosses under the $d and if %k is greater than 20
  SellOpen if Crossunder($k,$d) and Today($k)>80;
}