Author: Rule-Based Trader

Title graphic introducing a gold ETF day trading strategy with short signals.

Title graphic introducing a gold ETF day trading strategy with long signals.

Why You Should Wait Before Going Live Traders obsess about walk/forward, Monte Carlo analysis, and out-of-sample analysis. But this is not the best way to test your strategies. The gold standard is incubation, and we have been doing it for…

Quantified Strategies graphic showcasing combined RSI, EMA, and VWAP backtest

Today, we look at a trend following strategy for individual stocks. The strategy is loosely based on Nick Radge’s Weekend Trend Trader strategy. Trend following is one of the oldest and simplest ideas in trading: instead of trying to predict…

About ten years ago, we presented a strategy we called the Triple RSI strategy. At the time, we backtested SPY. Since then, it has performed well, but it’s a strategy that does not trade often. It will trade more frequently…

You probably haven’t heard of Cutler RSI. But our backtests show it performs better than the traditional RSI (depending on your risk preferences). In this article, we backtest Cutler RSI and compare it to the traditional RSI. What is Cutler…

Today, we’ll give you a day trading strategy for the short side. The strategy goes short and thus profits from falling prices. The rules are extremely simple, and they have some structural logic. A Rare Day Trading Strategy for the…

Today’s trading strategy is a calendar day strategy for individual stocks. What do we mean by calendar day? By calendar day, we mean a strategy that buys and sells on specific days each month. It’s not complicated and might serve…

Today we are showing an RSI trading strategy for stocks, something many readers have wanted. The strategy trades individual stocks in the Nasdaq 100 index. We also backtested it for S&P 500 stocks, and it works there as well. RSI…

Today, we would like to show you what we consider the best RSI strategy for the S&P 500. About ten years ago, we “optimized” the lookback period, and found that the number of days we use in this article was…

This article shows you a volatility compression trading strategy that enters at the close and sells at tomorrow’s open (or close) – that is, less than 24 hours, unless it’s a Friday and you need to hold over the weekend….

Today we show you the Wednesday Turnaround Strategy, a cousin of the Tuesday Turnaround Strategy. As it turns out, the Wednesday Turnaround Strategy is almost as good as the Tuesday strategy. Just look at this backtest: Wednesday Turnaround Strategy Strategy…

Today we show you what we call the QS RSI strategy. Most traders are familiar with the Relative Strength Index (RSI). It is simple, easy to calculate, and useful for identifying short-term strength and weakness. However, RSI only measures one…

A Simple Stochastic Pullback Strategy for Uptrending Markets aims to buy short-term weakness without fighting the broader trend. The basic idea is straightforward: when a market is trading above a rising moving average, a low Stochastic reading may signal a…

Today, we ask a simple question: Should you avoid bear markets? First, we need to establish what a bear market is: it’s when the price is below the 200-day moving average. The average is a frequently used filter for bull…