In a previous video I showed you an effective way to make money trading the S&P 500 using a very reliable indictor; RSI. If you have not yet seen the video then you can watch it here
The strategy which I learnt from Larry Connors works by taking advantage of the S&P’s tendency to revert to the mean on a daily timeframe. Today I am going to show you exactly how to code or program the strategy into my trading platform, Multicharts. If you’re curious about what it takes to code a profitable trading strategy so you can then backtest or even trade in an automated way, then I think you’re going to love this video.
I will walk through the code explaining each step so by the end of it you’ll have a very good understanding how Multicharts’ language works. Multicharts, by the way uses a very similar coding language to Tradestation. So you can apply this code to Tradestation too. Once you have the code you can then backtest the strategy on different markets, make small adjustments to entries and exits and create optimisations.
The code is available on the internet but I have written it myself to simplify things as much as possible.
Watch the video now:
Here’s the code that I wrote out in the video which works in Multicharts:
// Code for RSI2 Daily strategy Long Only
If marketposition = 0 and ( RSI(Close,2) <= 10 ) and
( Close > Average(Close, 200) ) Then buy this bar at Close;
If marketposition = 1 and ( Close > Average(Close,10) ) Then sell this bar at Close;
I hope what I have showed you doesn’t appear too complicated. Profitable trading strategies don’t necessarily have to be complicated, it’s often a myth!
I would encourage you to have a play around with Multicharts yourself. They actually offer a free 30 day trial. You can get that here: https://www.multicharts.com/ By the way, I am not affiliated what so ever with Multicharts, I just love the platform!
In the next video I will continue with the code we’ve just created and look in detail at the results of the strategy. I’ll explain the Performance Report accessible in Multicharts. Showing you all of the important charts and numbers gathered by the software and how and why they are important when really trading.
As always, if you have any questions about it then please ask. Comment or email me firstname.lastname@example.org