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.

#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;
}

• This topic was modified 7 years, 8 months ago by  jez.
• This topic was modified 7 years, 8 months ago by  Seer.
• This topic was modified 7 years, 8 months ago by  Seer.
• This topic was modified 7 years, 6 months ago by  Seer.