Cumulative RSI Strategy by TradeAutomation
By TradeAutomation
Performance Metrics
- Author: TradeAutomation
- Symbol: NASDAQ:TQQQ
- Timeframe: 1 day
- Net P&L: +8,636,964.26 USD (+40,605.41%)
- Win Rate: 92.0%
- Profit Factor: 37.802
- Max Drawdown: 273,725.68 USD (13.79%)
- Total Trades: 25
- Sharpe Ratio: 0.319
Description
I suppose nothing drives a point home like a 10+ year backtest! A couple of weeks ago I published a custom indicator called the Cumulative RSI. This indicator was straight out of chapter 9 of "Short Term Trading Strategies That Work." Today I am publishing a basic sample strategy in that uses the Cumulative RSI as its only entry and exit signals on a Nasdaq 100 leveraged index ETF (TQQQ). In this example, the indicator is being used as a longer term strategy with just 10% leverage over the account equity and a $25k start balance. If I had it 10 years ago I would probably be retired! I'm sharing because I've found that it can provide an edge when determining exit/take profit points for trades. Many traders wait for a price reversal / trailing-stop to exit a trade when it starts losing. I've found that, using tools like the Cumulative RSI, you can achieve better exit points over the long term. Disclaimer: Even though this example significantly beats buy and hold, I wouldn't advise using it as a stand-alone strategy without significant additions/modifications to strategy and risk management functions.