Trading Systems  |  JAN 2011

Combining RSI with RSI by Peter Konne

Optimization and stop-losses can help you minimize risks and give you better returns. ou would like to be long in a market that’s trending up, but what about when the trend turns down? Do you exit and just watch from the sidelines, or do you try to trade on the corrections in the downtrend? Here’s a simple combination where you can trade long-term uptrends and short-term corrections, all in one chart. One of my previous strategies didn’t allow me to enter a trade and stay there in a long and strong uptrend, since the strategy was designed to use the relative strength index (Rs i) on a daily basis. The total return from my Rs i strategy was fair, but there were many trades with little return, especially in volatile markets.

by Peter Konne