Here is the backtest that I made, from the « RSI-2 Strategy » of Larry Connors. He’s also the co-author of the « Cumulative RSI » Strategy. It took me 5 minutes to write the code, as the rules are very simple: no need to detail them. Even if the strategy is positive on many stocks, indices, I don’t find it that great. Rules of Cumulative RSI strategy: Close of the stock is above Rs.5 and average daily volume over the last 21 days greater than 500000 shares. The closing price of the stock must be above 200 Day Moving Average. Today buy on the close if the total of today’s RSI (2) plus yesterday’s RSI (2) is less than 2, 5,10,15,20. In most of the testing I’ve done with the RSI(2) system I get better results when using RSI level 70 or 90 as exit instead of using exit at MA(5) like L. Connors. And also I get better results not using MA(200) as a filter. Yes, drawdows will be bigger, but trading a plain RSI(2) system is better in my opinion, most of the time. Submit by Freddy Fx Connors RSI is a template based on RSI Index and modified bollinger bands for scalping and trading with binary options high/low. This is a reversal trend strategy. Time frame 5 min. Currency pairs:majors. Binary Options high/low expiry time 2-3 candles o 3 min.
Oct 26, 2018 Connors Research Trading Strategy Series utilize the Relative Strength Index (RSI) calculations developed by Welles Wilder in the 1970s, and the third component ranks the most recent price change on a scale of 0 to 100. Mar 25, 2019
This is an interpretation of Larry Connors RSI 2 strategy. A Simple Trading Strategy: Triple RSI. I'm going to use the Relative Strength Index (RSI), set to 21. 15 Aug 2019 The RSI2 trading indicator is a change from the standard 14 period RSI to a 2 period that was brought to us by Larry Connors. The other 29 Aug 2019 By Chris Cain, CMT and Larry Connors In two of the strategies presented in our new book, The Alpha Formula: Beat the Market with Less Risk, 29 Jul 2019 Earlier there was mention of Connors RSI(2) Strategy There are 4 steps to the strategy. Get it Here (Also an excellent resource for Technical
Connors RSI. The literature which Google offers as a reference for this indicator: Nirvana Systems - Creating the “Ultimate” Indicator - Connors RSI; TradingView - Connors RSI; Both sources agree on the formulat, although not on the terminology (see below). The Connors RSI shall be calculated as follows: Strategy 1: RSI PowerZones. The following is LONG only trading strategy used on the SPY, or S&P500 EFT. The strategy hold time averages between 3-5 trading days. The strategy contains a ‘cannonball’ method that adds a second unit, or double position if the condition persists. Here are the rules for the RSI Power Zones: a. Short term Relative Strength, i.e., RSI(3). b. Counting consecutive up and down days (streaks) and “normalizing” the data using RSI(streak,2). The result is a bounded, 0-100 indicator. c. Magnitude of the move (percentage-wise) in relation to previous moves. This is measured using the percentRank() function. The formula given is:
The 2-period Relative Strength Indicator (RSI) strategy was developed by Larry Connors. It is based on the principle that market prices return to a mean after significant highs or lows. A buy signal is generated when the 2-period RSI goes below 5 and the market price is above the 200-period MA. ConnorsRSI Can Change Your Entire Approach to the Way You Trade Options -- For the Better! This New Research Shows How You Can Use ConnorsRSI to Improve Your Accuracy Introducing: Options Trading with ConnorsRSI Options trades can have a reputation as “risky” investments among many retail traders. That perception may change when you examine this new research on applying RSI-2 Strategy ***At the bottom of the page is a link where you can download the PDF of the Backtesting Results. This year I am focusing on learning from two of the best mentors in the Industry with outstanding track records for Creating Systems, and learning the what methods actually work as far as back testing.