Introduction As you know the Relative Strength Index (RSI) was originally developed by J. Welles Wilder and was described in his book "New Concepts in Technical Trading Systems" (1978). It is intended to measure the strength or weakness of an instrument for the specified period.
The most basic strategy is to use the crossovers as trade signals:
when RSI crosses above 30, go Long
when RSI crosses below 70, go Short
Exit when a crossover occurs in the opposite direction
What is this tool? This tool is a performance scanner that uses a decision tree-based algorithm under the hood to find the most profitable settings for RSI. It analyzes the range of periods between 2 to 100 and backtests the RSI for each period using the strategy mentioned above across the entire history of an instrument. If the more profitable parameter was found, the indicator will switch its value to the found one immediately.
So, instead of manually selecting parameters just apply it to your chart and relax - the algorithm will do it for you.
The algorithm can work in two modes: Basic and Advanced "Early Switch". The Early Switch algorithm makes some assumptions and activates a set of optimizations to find the better setting DURING the trades, not after they were closed.
The difference is illustrated on the screenshot below:
Additionally you can set up a backtest window through indicator's settings (the optimizers which were published before will get this feature soon).
Alerts It has a special alert that notifies when a more profitable period was detected.
NOTE: It does not change what has already been plotted. NOTE 2: This is not a strategy, but an algorithmic optimizer.
Day after day. Night after night. I've been waiting to program again. Day after day. Night by to night. Trading is waiting inside your heart.
How much is this indicator? Also, you mention it not being a strategy then give backtest results to a strategy? is it able to be used in automation? Lastly, I use the Rank Correlation Index and have found it to be very good.I have 100 different intervals b/t 100-1000 averaged together to create my osc. Would it be simple to basically copy and paste this script to use that and to cycle between diff OB/OS thresholds instead of by period? or is that basically asking you to create an indicator from scratch for me? Seems it would follow the same logic. Thanks for your time either way.