QUIET CANDLE

DIARY

Does RSI work?

Periods, levels, momentum and divergence: 15 tests. This chapter produced the first results that did not fail easily.

RESULTConclusion

  • Of 9 H1 mean-reversion settings, the frequently trading ones lost. The positive settings traded rarely, 9 to 496 times.
  • Daily RSI14 30/70 made +13.8% after costs, positive in both halves. But at 35/65 the second half turned negative, so it failed the recheck.
  • The RSI2 pullback on daily stock indices made +22.5% after costs with a 73.5% win rate. The recheck did not eliminate it. See What survived.

BEFORE AND AFTER COSTSBefore and after costs

Before costsAfter costs

0−83%+18%RSI2 pullback D1 indicesRSI2 pullback D1 indices before costs +23.7%RSI2 pullback D1 indices after costs +22.5%fade RSI14 30/70 D1fade RSI14 30/70 D1 before costs +14.5%fade RSI14 30/70 D1 after costs +13.8%fade RSI21 20/80 H1fade RSI21 20/80 H1 before costs +4.3%fade RSI21 20/80 H1 after costs +3.6%fade RSI14 10/90 H1fade RSI14 10/90 H1 before costs +1.2%fade RSI14 10/90 H1 after costs +1.1%fade RSI21 10/90 H1fade RSI21 10/90 H1 before costs +0.7%fade RSI21 10/90 H1 after costs +0.6%fade RSI14 20/80 H1fade RSI14 20/80 H1 before costs 0.0%fade RSI14 20/80 H1 after costs −2.8%momentum 70/30 H1momentum 70/30 H1 before costs +2.9%momentum 70/30 H1 after costs −3.2%fade RSI7 10/90 H1fade RSI7 10/90 H1 before costs −1.5%fade RSI7 10/90 H1 after costs −4.5%fade RSI21 30/70 H1fade RSI21 30/70 H1 before costs −4.7%fade RSI21 30/70 H1 after costs −10.4%fade RSI14 30/70 H1fade RSI14 30/70 H1 before costs −1.3%fade RSI14 30/70 H1 after costs −13.6%momentum 60/40 H1momentum 60/40 H1 before costs −0.5%momentum 60/40 H1 after costs −18.2%divergence H1divergence H1 before costs +5.6%divergence H1 after costs −21.8%fade RSI7 20/80 H1fade RSI7 20/80 H1 before costs −6.5%fade RSI7 20/80 H1 after costs −22.7%fade RSI7 30/70 H1fade RSI7 30/70 H1 before costs −6.5%fade RSI7 30/70 H1 after costs −43.1%cross 50 H1cross 50 H1 before costs −1.8%cross 50 H1 after costs −88.6%

ALL TESTSAll 15 tests

ConditionTradesWin rateBefore costsAfter costs1st half2nd halfRandom avg
fade RSI7 30/70 H123,79563.6%−6.5%−43.1%−28.5%−14.6%−40.2%
fade RSI7 20/80 H110,71960.8%−6.5%−22.7%−14.5%−8.1%−17.5%
fade RSI7 10/90 H12,02858.7%−1.5%−4.5%−2.6%−1.9%−3.4%
fade RSI14 30/70 H18,20962.6%−1.3%−13.6%−5.8%−7.8%−14.7%
fade RSI14 20/80 H11,95859.6%0.0%−2.8%−1.5%−1.3%−3.7%
fade RSI14 10/90 H17861.5%+1.2%+1.1%+0.3%+0.8%−0.2%
fade RSI21 30/70 H13,89060.4%−4.7%−10.4%−6.1%−4.3%−7.1%
fade RSI21 20/80 H149658.7%+4.3%+3.6%+1.4%+2.1%−1.1%
fade RSI21 10/90 H1955.6%+0.7%+0.6%+0.2%+0.5%0.0%
fade RSI14 30/70 D146160.7%+14.5%+13.8%+6.9%+6.9%−5.3%
momentum 60/40 H111,93934.1%−0.5%−18.2%−14.1%−4.2%−16.0%
momentum 70/30 H14,20736.6%+2.9%−3.2%−6.2%+2.9%−5.2%
cross 50 H156,93021.1%−1.8%−88.6%−51.1%−37.5%−87.2%
RSI2 pullback D1 indices29473.5%+23.7%+22.5%+6.9%+15.6%+4.8%
divergence H117,79049.9%+5.6%−21.8%−16.5%−5.3%−30.4%

Next: Bollinger Bands →

This diary records tests on historical data. It does not recommend any method or symbol and does not indicate future profit or loss. Please make investment decisions at your own risk.