Koi_Capital

Simple RSI-MA Algo Beats DOW By Huge Margin Over Past 100 Years!

This simple RSI-MA long/short algorithm beats the Dow by a FREAKING HUGE margin over the past century (excluding dividends and trading costs).

The algorithm uses a fast SMA of the RSI as a buy/cover signal and a slow SMA of the RSI as a sell/short signal.

Backtest period = 09/17/1916 - 11/02/2015

Dow = 98 --> 17,830 = +18,094% = 5.38% CAGR
Algorithm = net profit + open P/L = +43,349% = 6.31% CAGR

Notice how the algorithm dodged both the 30s' Great Depression and the 2008 Crisis. Pretty cool huh? :)

ALGORITHM'S FORMULA (use weekly chart):
Buy/Cover = MA10(RSI10) cross> 50
Sell/Short = MA50(RSI10) cross< 50

STRATEGY TESTER'S SETTINGS:
- Initial cash = $10,000
- Pyramiding disabled
- Re-investment enabled (order size = 100% of equity )
- Trade re-calculations disabled

DISCLAIMER: None of my ideas and posts are investment advice. Past performance is not an indication of future results. This strategy was constructed with the benefit of hindsight and its future performance cannot be guaranteed.
Skrip sumber terbuka

Dalam semangat TradingView yang sebenar, penulis skrip ini telah menerbitkannya dengan menggunakan sumber terbuka supaya pedagang-pedagang dapat memahami dan mengesahkannya. Sorakan kepada penulis! Anda dapat menggunakannya secara percuma tetapi penggunaan semula kod ini dalam penerbitan adalah dikawalselia oleh Peraturan Rumah. Anda boleh menyukai skrip ini untuk menggunakannya pada carta.

Ingin menggunakan skrip ini pada carta?
//@version=2
strategy("RSI-MA Algo", overlay=true)
price = close

basis = rsi(close, input(10))

sma1 = sma(basis, input(50))
sma2 = sma(basis, input(50))

oversold = input(30)
overbought = input(70)

if (crossover(sma1, 50))
    strategy.entry("MA2CrossLE", strategy.long, comment="BUY")

if (crossunder(sma2, 50))
    strategy.entry("MA2CrossSE", strategy.short, comment="SELL")

//plot(strategy.equity, title="equity", color=red, linewidth=2, style=areabr)