RSI(2) On QQQ (Nasdaq)

Last Updated on March 6, 2021 by Oddmund Groette

Back in 2016 I published an article on using short term RSI (relative strength index) on SPY. Let’s test how a slightly different strategy performs on QQQ:

  1. RSI(2) must be lower than 10.
  2. IBS must be lower than 0.2 (Internal Bar Strength (IBS)).
  3. If both 1 and 2 are true, then enter at close.
  4. Exit at close when today’s close is higher than yesterday’s high.
RSI(2) works even better on QQQ than on SPY.

The numbers look like this:

Buy and hold returns 7.87%, while the strategy returns 13.79%, a pretty big difference. Even better, the strategy has performed very well in four bear markets (2000-2002, 2008/09, 2018 and Covid-19 in March 2020).

If you find this article useful, you might want to have a look at our landing pages for a lot of other trading strategies and edges:

 

Disclosure: We are not financial advisors. Please do your own due diligence and investment research or consult a financial professional. All articles are our opinions – they are not suggestions to buy or sell any securities.