While I appreciate the time and the process involved in this analysis. However I am puzzled by the fact that no clear conclusion was discussed as to RSI settings which would optimize outcome based on the data
Cmon guys, watch it again. Length is 2. Trigger is 5 and 95. I just eye balled this on some of the sectors like XLF SOXX. If your just looking to grab a few % your almost guaranteed every time as long as you only go long above the 200 and short below the 200. I'm using daily candles
These are the settings I can deduce from the video. RSI, period 2. Buy: when the RSI2 is below 30. (From the chart, all levels are profitable, so you can't go wrong, but the highest seems to be 30. Anything between 20 and 30 looks good). Sell/Exit: First profitable day, i.e., any day when price closes above your entry price. As he said, this is not optimized but is profitable. The danger here is that there is no stop loss. It is not a bad thing but you have to be prepared for potentially huge drawdowns. My twist: you can test exiting when RSI is above 75.
Sir, I read your books,pdf,courses & watch videos.In trend trading. ON HIGHER TIME FRAME,the momentum has to be higher than zero AND GOING UP for buying & cycle has to be in the same direction PLUS 50 MA has to be going up .Does price have to be above 50 MA on longer time frame as well? .What are best settings for stochastics & MACD on higher time frame & do these settings have to be same as in lower time frame? Thank you.
So you don't discuss time frame at all, unless I missed it? It looks like your conclusion of a 2 RSI was for a daily chart. What about intraday trading, like a 5-minute chart? Would the 2 RSI still hold up regardless of time frame, whether it is 1-day bars, or 5-minute bars, or 1-minute bars, etc.?
Hi can you share python code for the same. Also i saw in video that you optimised the look back period of 2 and buying after crossing level 5. Correct me if i am wring, while placing indicator it was showing 14 days period? So little confusing. Pl clarify the look back peroid This calculation is based on which trime frame?
RSI, period 2. Buy: when the RSI2 is below 30. (From the chart, all levels are profitable, so you can't go wrong, but the highest seems to be 30. Anything between 20 and 30 looks good). Sell/Exit: First profitable day, i.e., any day when price closes above your entry price. As he said, this is not optimized but is profitable. The danger here is that there is no stop loss. It is not a bad thing but you have to be prepared for potentially huge drawdowns. My twist: you can test exiting when RSI is above 75.
Looked forward to your video as I do since you have some interesting approaches for beginners but got dismayed upon seeing the clickbaity titel. An overfit backtest is just very negative alpha and a waste of time for everyone, like a secret mindset video :/ Hope for people to learn something interesting instead next week and no clickbait. Also, great production value as usual, dont let my boring opinions drag you down, I watch because you got me into amibroker and then down the rabbit hole so I'm just looking out for the next generation.
In this video, I simply shared my findings as to whether an indicator can provide some degree of alpha in the markets, as opposed to developing an actual strategy. For that reason, I didn’t follow the IS and OOS approach - I actually addressed this in one of my previous videos but didn’t know I have to explicitly spell it out every time I am researching an indicator like in this video. In terms of clickbait etc. - well, one has to optimise their videos so that they have a chance to get some views, that’s just the reality of doing TH-cam , though I understand that you don’t necessarily comprehend that as a viewer. The title is aligned with the content of my video so I don’t understand why you’d take an issue with it. I will pass on commenting on comparison of my channel to what i call “trading entertainment” channels
@@CriticalTrading I know what you need to do to get clicks. I was just hoping for your personal brand of insights into not-a-dead-end, and was dismayed by it. I can optimize for the optimal lookback or array or whatever in any indicator, and the result will always be 100% useless to apply to the markets. Of course, your process is interesting so that's a plus from me. Like I said, just a boring opinion, I'm a viewer so I'm providing feedback and criticism - good and bad - as I hope you'd welcome from viewers.
Have you ever considered using machine learning to optimize an algorithmic trading strategy? I was just reading a paper about how there are steps taken to correct overfitting: "Deep Reinforcement Learning for Cryptocurrency Trading: Practical Approach to Address Backtest Overfitting" I think that this could be some real secret sauce, but I'm sure you're probably already onto it.
Thanks for the attempt. But i do not understand your initial statement. RSI is often misused : your trigger is RSI in its extreme levels. It is NOT a correct way to use it most of the time. RSI is measuring SPEED and MAGNITUDE of recent (period) price change. Then, the correct statement would be : in an uptrend, maintain your long whilst still above 50, in a downtrend, maintain your short whilst still below 50. When crossing 50 (which also could be considered a zone like 45-55 as your wish) then, you can expect a change in the trend or reversal or retrace. The horrible "overbought" & "oversold" statement drove a lot of people on dead ends. Just my 2 cp (as a side note, i had very decent results reading on a 5 min chart with RSI period 4, and SMA 9. Entries triggers crossing 0 line and/or SMA crossing RSI line)
Well, firstly I don’t think anything like “that’s not how you do something” in trading exists. Secondly, it’s got nothing to do with the experience level - what I shared is mean reversion, what you said you trade is momentum approach. If your approach works for you then stick with it (I can only assume you have lots of tests to back your claims, as opposed to just thinking it…)
While I appreciate the time and the process involved in this analysis. However I am puzzled by the fact that no clear conclusion was discussed as to RSI settings which would optimize outcome based on the data
Yeah. I got rsi value at 2. And then I missed the optimal trigger points.
Cmon guys, watch it again. Length is 2. Trigger is 5 and 95. I just eye balled this on some of the sectors like XLF SOXX. If your just looking to grab a few % your almost guaranteed every time as long as you only go long above the 200 and short below the 200. I'm using daily candles
@@djwctbell Serve para outros tempos graficos? gatilho 5 e 95
This guy could be a politician
Can you tell what the RSI will be if price up to certain level?
These are the settings I can deduce from the video.
RSI, period 2.
Buy: when the RSI2 is below 30. (From the chart, all levels are profitable, so you can't go wrong, but the highest seems to be 30. Anything between 20 and 30 looks good).
Sell/Exit: First profitable day, i.e., any day when price closes above your entry price.
As he said, this is not optimized but is profitable. The danger here is that there is no stop loss. It is not a bad thing but you have to be prepared for potentially huge drawdowns.
My twist: you can test exiting when RSI is above 75.
Jono aqui para mim na Deriv usando venda quando estiver no nivel 75 esta indo muito bem obrigado pela dica
I used 5 and 95 as my entries. Way less signals but extremely accuratr
Pretty crazy how successful this is when backtesting.
Sir, I read your books,pdf,courses & watch videos.In trend trading. ON HIGHER TIME FRAME,the momentum has to be higher than zero AND GOING UP for buying & cycle has to be in the same direction PLUS 50 MA has to be going up .Does price have to be above 50 MA on longer time frame as well? .What are best settings for stochastics & MACD on higher time frame & do these settings have to be same as in lower time frame? Thank you.
I wish you told us that backtesting software name.
LOL waste of time, what are the best settings?! That is the whole point of the video, no?
I have the same question, bla bla but no settings lol
Setting period 2 and level around 10 i guess
I think he mentioned 5 are you serious when next year
You haven't used a SL? And what was your TP?
So you don't discuss time frame at all, unless I missed it? It looks like your conclusion of a 2 RSI was for a daily chart. What about intraday trading, like a 5-minute chart? Would the 2 RSI still hold up regardless of time frame, whether it is 1-day bars, or 5-minute bars, or 1-minute bars, etc.?
What exit rules have u identify while testing on RSI(2)
Is it possible that different stocks may have different efficienct RSI levels? Just curious.
Yeah you need to backtest it and even then its not sure
Soo what are the settings 😊
No shit. All fluff no follow thru.
What techniques do you use? I'm a beginner who is still learning about trading in the nfc community.
Really nice backtested research!!
But what is the exit criteria. Like we will enter when RSI(2) is below 5, then when should we exit?
It was first up day (close > open) following the entry
What's the take profit
Nice analysis! Do you use python for backtesting?
No I use Amibroker but use Python for various analyses post backtest
Hi can you share python code for the same. Also i saw in video that you optimised the look back period of 2 and buying after crossing level 5. Correct me if i am wring, while placing indicator it was showing 14 days period? So little confusing. Pl clarify the look back peroid This calculation is based on which trime frame?
Cool, but where’s the conclusion of what the best settings actually are?
RSI, period 2.
Buy: when the RSI2 is below 30. (From the chart, all levels are profitable, so you can't go wrong, but the highest seems to be 30. Anything between 20 and 30 looks good).
Sell/Exit: First profitable day, i.e., any day when price closes above your entry price.
As he said, this is not optimized but is profitable. The danger here is that there is no stop loss. It is not a bad thing but you have to be prepared for potentially huge drawdowns.
My twist: you can test exiting when RSI is above 75.
Could you please test it on ES and NQ?
I only use RSI for divergence
RSI 4 on 4hrs on oil its great 20-80
George Soros always used rsi period 14. Overbought at 70 and oversold is 30.
what time frame did he use?
@kosalyoutube26 on 4 hours chart
Looked forward to your video as I do since you have some interesting approaches for beginners but got dismayed upon seeing the clickbaity titel. An overfit backtest is just very negative alpha and a waste of time for everyone, like a secret mindset video :/
Hope for people to learn something interesting instead next week and no clickbait.
Also, great production value as usual, dont let my boring opinions drag you down, I watch because you got me into amibroker and then down the rabbit hole so I'm just looking out for the next generation.
In this video, I simply shared my findings as to whether an indicator can provide some degree of alpha in the markets, as opposed to developing an actual strategy. For that reason, I didn’t follow the IS and OOS approach - I actually addressed this in one of my previous videos but didn’t know I have to explicitly spell it out every time I am researching an indicator like in this video. In terms of clickbait etc. - well, one has to optimise their videos so that they have a chance to get some views, that’s just the reality of doing TH-cam , though I understand that you don’t necessarily comprehend that as a viewer. The title is aligned with the content of my video so I don’t understand why you’d take an issue with it. I will pass on commenting on comparison of my channel to what i call “trading entertainment” channels
@@CriticalTrading I know what you need to do to get clicks. I was just hoping for your personal brand of insights into not-a-dead-end, and was dismayed by it.
I can optimize for the optimal lookback or array or whatever in any indicator, and the result will always be 100% useless to apply to the markets.
Of course, your process is interesting so that's a plus from me.
Like I said, just a boring opinion, I'm a viewer so I'm providing feedback and criticism - good and bad - as I hope you'd welcome from viewers.
Have you ever considered using machine learning to optimize an algorithmic trading strategy?
I was just reading a paper about how there are steps taken to correct overfitting: "Deep Reinforcement Learning for Cryptocurrency Trading: Practical Approach to
Address Backtest Overfitting"
I think that this could be some real secret sauce, but I'm sure you're probably already onto it.
Actually not yet but it’s definitely on my radar, thanks for sharing
@@CriticalTrading there are also strides in using GPT4 to explain models, so you may be able to see inside the black box of any working models too.
You tested 200,000 trades? I doubt it.
test it on lower timeframe futures charts-horrible
50 rsi.. 100 ema+use bollinger on rsi ;)
This video was just a waste time 🤦🏽♂️
For anyone reading go and explore power zones. It is a better way to look at rsi instead.
can u pls test on forex , please
Thanks for the attempt. But i do not understand your initial statement. RSI is often misused : your trigger is RSI in its extreme levels. It is NOT a correct way to use it most of the time. RSI is measuring SPEED and MAGNITUDE of recent (period) price change. Then, the correct statement would be : in an uptrend, maintain your long whilst still above 50, in a downtrend, maintain your short whilst still below 50. When crossing 50 (which also could be considered a zone like 45-55 as your wish) then, you can expect a change in the trend or reversal or retrace. The horrible "overbought" & "oversold" statement drove a lot of people on dead ends. Just my 2 cp (as a side note, i had very decent results reading on a 5 min chart with RSI period 4, and SMA 9. Entries triggers crossing 0 line and/or SMA crossing RSI line)
That's one way. Many use oversold and overbought levels PLUS a SMA cross over. He didn't cover the ma crossover signal here.
?????????
You Tested 200000 trades 😂😂😂😂
Yes, using Amibroker
Bad video.sorry😢😢😢
That's not how you trade RSI.
Your way is for the newbies.
Only trade momentum breakouts with RSI crossing the 50-line. Use 5-period.
Well, firstly I don’t think anything like “that’s not how you do something” in trading exists. Secondly, it’s got nothing to do with the experience level - what I shared is mean reversion, what you said you trade is momentum approach. If your approach works for you then stick with it (I can only assume you have lots of tests to back your claims, as opposed to just thinking it…)
So how many billions have you made with your system?