RSI And How To Profit From It

[RSI And How To Profit From It]

Hi Phil-n-Texas,

 

Thanks for your post. I also have OT Pro. I can probably figure out how to filter on hit rate and select based on profit per trade, but if you have any suggestions, they would be great. Do you combine the strategies into a single strategy in OT Pro and require some n number of them to fire, or just allow all of them to fire signals and then filter the way you described?

 

Last question - promise - is the equity curve you mention from live trading or from OT reports? I've never fully trusted the OT backtest results.

 

The separate discussion about stops is a good one. I would want to have some kind of disaster stop in place - the flash crash would be a good example of why. But in general, selecting the "right" stop is very difficult and I have also seen system results actually go down thanks to stops!

 

Thanks,

 

Gordon

 

 

JSW... thanks for the article...

 

I'm a big fan of Connors and coded up his 7 strategies for ETFs in Omnitrader Pro...

 

i've been running them for about a year now with excellent results.

 

however, i'm curious about your choice of $1000 catastrophic stop loss on the ES. Connors dedicates chapter 6 in the book you reference about stop losses and presents a case for not using them.

 

Connors was going to speak at a local trading organization meeting last month and I had planned on asking him directly about this while providing a few examples of some pretty serious losses that would no doubt wipe out a smaller account considering position sizing limitations. the Q&A never happened as i was unable to attend the meeting and as it turned out neither was he.

 

fwiw, one thing i did do within my 7 ETF strategies was to add an additional filter to only allow signals on strategies that backtested over 7 years with hit rate >= 85. additionally within those strategies that meet that threshold they are ranked by profit per trade.

 

you should see the equity curve:cool:

 

back to your example: i have been hesitant to use the RSI strategy variations with futures and holding overnight because of the drawdown issue.

 

Again, just curious about how you came to use $1000 catastrophic loss. Also, what account size and lot size are you using in your backtesting?

 

for example, i could see where a $10K account trading 1 contract with the $1K stop loss could possibly play out w/o blowing up an account.

 

Thanks,

 

-phil