The Strategic Trader
Detailed Strategy Evaluation

RSI Part 3 – Threshold Cross

In this article we aim to discover the significance of actually crossing a threshold. Because RSI is a momentum based indicator it stands to reason that the actual act of crossing a threshold may signal a better trade.

(Comparison Results With RSI Part 2 – Long Only)
Method: RSI(3) < 10
Percent Profitable: 60.36%
Net Profit: +12,100
Trades: 1559


Requiring an actual cross only seems to decrease the number of trades. Profit factor and percent profitable remain nearly unchanged. Therefore we can conclude that the act of being below a threshold as seen in “RSI Part 2″ is sufficient and that watching only the cross is not required.

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