Connors rsi trading strategy

Testing The RSI 2 Trading Strategy

 

connors rsi trading strategy

To conclude, we can say that Connors RSI 2 trading strategy is a very effective trading system and is suitable for aggressive short-term traders. However, there are some other time tested and proven trading strategies which when combined with the 2 period RSI strategy can yield phenomenal trading tartangosa.tk: Abhijit Paul. Jan 20,  · Whereas, the RSI 14 can be implemented in a trend following system, RSI 2 is a lot more volatile and more suited to shorter term trading. Testing The RSI 2 Trading Strategy. I believe the RSI 2 trading strategy was first popularised by Larry Connors and Cesar Alvarez in the book Short-Term Trading Strategies That Work, published in November Author: Joe Marwood. Developed by Larry Connors, the 2-period RSI strategy is a fairly simple mean-reversion trading strategy designed to buy or sell securities after a corrective period. Traders should look for buying opportunities when 2-period RSI moves below 10, which is considered deeply oversold.


How I Trade With Only The 2-Period RSI - Trading Setups Review


Although the percentage of winners has only declined slightly, the drawdown connors rsi trading strategy more than doubled. If we look at the profit table, we can see that the system has actually done quite well every year except in where it lost So, the RSI 2 trading strategy really has been a great way to get on board some oversold stocks and make some profitable mean reversion trades!

In recent years the strategy has performed nowhere near as well. This may prove difficult. Also, connors rsi trading strategy, the short-term nature of the system means that slippage estimates may vary.

Overall Thoughts The performance of the RSI 2 indicator strategy seems to have lost some of its edge in recent years. This may be because markets have become more efficient, because the strategy has become more widely known, or a combination of the two. The strategy is also difficult to implement especially when dealing with a large universe of stocks, connors rsi trading strategy. Overall, the RSI 2 indicator still shows some promise for development and could be used with other rules and on other markets such as on the VIX or fundamental data sources.

So long as you can accurately forecast the closing RSI values, it may still be possible to make money from this strategy, or from a variation of it. Want the Amibroker code for this strategy? Thank-you for reading. You may connors rsi trading strategy like:.

 

How to trade using Larry Connor’s 2-period RSI?

 

connors rsi trading strategy

 

To conclude, we can say that Connors RSI 2 trading strategy is a very effective trading system and is suitable for aggressive short-term traders. However, there are some other time tested and proven trading strategies which when combined with the 2 period RSI strategy can yield phenomenal trading tartangosa.tk: Abhijit Paul. Trading Rules – 2-Period RSI Strategy Coupling an oscillator with a trend indicator is the usual approach. For instance, Connors recommended the period moving average, and tartangosa.tk did just that in their RSI2 examples. Jan 20,  · Whereas, the RSI 14 can be implemented in a trend following system, RSI 2 is a lot more volatile and more suited to shorter term trading. Testing The RSI 2 Trading Strategy. I believe the RSI 2 trading strategy was first popularised by Larry Connors and Cesar Alvarez in the book Short-Term Trading Strategies That Work, published in November Author: Joe Marwood.