StockFetcher Forums · General Discussion · RSI(4) and EMA(8)<< 1 2 >>Post Follow-up
nibor100
572 posts
msg #144620
Ignore nibor100
9/10/2018 1:44:11 PM

Has anyone ever noticed any tendency for stocks that have closed above their EMA(8), and then having their RSI(4) move above 65, continue going on 5 or more consecutive days runs upward?

I was reviewing some charts in Edgerater Pro for their recent trading strategy template implementing Connors RSI Powerzones strategy from his new book "Buy the Fear Sell the Greed"; as explained in the Edgerater website Blog post from Aug 11th and I seemed to notice better gains at the top end of the RSI(4) range than at the targeted RSI(4) bottom values.

Just wondering if anyone else has seen similar trends before I go looking at hundreds more charts and perhaps beginning some backtesting.

Thanks,
Ed S.

Mactheriverrat
2,483 posts
msg #144621
Ignore Mactheriverrat
9/10/2018 2:05:48 PM

Sounds like something to look into.

mahkoh
1,064 posts
msg #144633
Ignore mahkoh
9/11/2018 1:14:03 PM

That wouldn't be too hard to code in Stratasearch?

nibor100
572 posts
msg #144639
Ignore nibor100
9/12/2018 11:16:41 AM

@mahkoh,

Yes, that would be easy enough to code in StrataSearch but for this kind of simpler backtest I prefer to use either Amibroker or Edgerater Pro.

If and when I get around to it I'll post what I find as it looks like no one has noticed any benefit from that particular indicator combination.

Thanks,
Ed S.

Cheese
891 posts
msg #144642
Ignore Cheese
9/12/2018 2:02:06 PM

Ed,
I can see the benefits but don't have the StrataSearch skills.
If possible, could you please record and post a step-by-step video
of how you run StrataSearch and you use it for this simple study?
Thank you.



nibor100
572 posts
msg #144672
Ignore nibor100
9/16/2018 11:16:16 AM

@Cheese,

Sorry, but doing videos of StratasSearch processes or any other computer process is not something I'm familiar with

Also, as I indicated in my prior post, I wasn't going to backtest these 2 coupled indicators in StrataSearch; but I would use either Amibroker or Edgerater Pro.

Since that post I've decided to use Amibroker, as the more charts I look at, the more promising the approach looks; and if the backtests turn out reasonably well, Amibroker has the additional capability of strategy Optimization.

Ed S.


Cheese
891 posts
msg #144674
Ignore Cheese
9/16/2018 1:33:29 PM

@ Ed S.
Thank you for your reply.

risjr
168 posts
msg #144685
Ignore risjr
9/17/2018 3:05:35 PM

Hi nibor100

Is there any particular filters that you mite, or add'l technical indicators you mite use here?

Thanks in advance

risjr



nibor100
572 posts
msg #144708
Ignore nibor100
9/19/2018 4:18:13 PM

@risjr,

I most likely will look at relationships to ADX and DI+ crossing over DI-, Bollinger Bands bottom band touches, upper band touches/crossovers and also squeezes, and Guppy MMA's stacking.

Ed S.

nibor100
572 posts
msg #144721
Ignore nibor100
9/21/2018 12:40:46 PM

I ran my first backtest on this approach and the results were not especially striking.

I used a watchlist of 5 stocks that Mactheriverrat had recent posts on : CARG, DNR, BRZU, AVP, MEET over the period of 1/3/17 to 2/2/18

buy and sell on next day Open

entry signal required Close greater than 8 day EMA AND RSI(4) crossing above 65.

for exit signal I used 8 day EMA crossing above Close OR RSI(4) > 89.

Results were a loss of -1.66% MaxDrawdown of -7.48%, win % 32.89, for 76 total trades.

The only promising thing about this backtest was that the majority of the Maximum Favorable Excursions (MFE) were profitable with 61 of them better than 1% gain.

If I assume every trade's result was the MFE then there would have been a total gain of 42.86%.

So other than needing better entry and exit criteria I'm all set :).

Suggestions are welcome
Ed S.




StockFetcher Forums · General Discussion · RSI(4) and EMA(8)<< 1 2 >>Post Follow-up

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