In today’s video I am going to show you how to build a simple trading strategy that wins over 85% of the time. It trades off of the daily chart and has just two rules. If you are exploring mechanical based trading as a way to become consistently profitable or if you are looking for an additional strategy to your already mechanical trading portfolio then I think you’re going to like what I am about to show you.
I’ll show you the entry and exit signals over on my charting software and then some performance figures over the 13 years that I have tested the strategy on.
It uses Relative Strength Index Indicator to identify the signals. Much credit goes to Larry Connors and Cesar Alvarez for introducing me to this trading strategy. The strategy successfully takes advantage of the S&P 500’s Mean Reversion tendencies on the daily timeframe.
This is a follow up to a previous video on technical indicators. I touched on this strategy I am about to show you and I have been asked for more information. Well that’s what this video is for.
Watch the previous video here:
https://www.thetransparenttrader.com/blog-articles/the-one-technical-indicator-you-can-trust/
Watch today’s video where I demonstrate the strategy. And I have also put together a PDF guide to using this strategy which you can download for free:
https://www.thetransparenttrader.com/wp-content/uploads/2018/08/RSI-Strategy-Guide.pdf