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----- Original Message -----
From: Dimitris Tsokakis
To: amibroker@xxxxxxxxxxxxxxx
Sent: Thursday, October 11, 2001 9:27 PM
Subject: New RSI trading system
Here is one possible explanation, why the two new systems are more
profitable. In many cases you are protected from wrong entries.
Look at the long term decline, (nearly 10 weeks) from PEAK to
TROUGH.
First chart is Modified RSI with Dbuy-Dsell steady levels.
Below is the new RSI Bollinger Bands system.
1]. All this period, RSI crossed some times 30, whithout result, but in
both systems you were TOTALLY OUT OF THE MARKET, protected
from a 50% decline.
2].The ENTRY points are quite reasonable, if you look the trend and not
the artificial 30 or 25 or any other level. In both systems, entries occurred at
RSI~20.
3].EXIT points are also reasonable and occured at RSI levels ~50 for both
systems
4] The last period, RSI crosses again 30, but you are still out of the market,
waiting in cash for a new signal.
There is no need to be a prophet to understand the following ELEMENTARY
things:
With 30/70 system you have already buy and wait at point X. If the stock drops
down (which will not surprise anybody), you will be again out of [30,70] and
stay with what you bought or buy again, according to your trading tactic.
With the new systems, you wait sellers to loose their power and find a better
entry (perhaps).
In the mean time, you may see some friends, drink a beer, write to the mail-list
and think about some new system to understand the Market better.
What do you think about ?
Dimitris Tsokakis
P. S. A friend of mine (and I write this with his permission), has the following
...funny problem : He bought at December 2000 cross(RSI,30) and he is still
waiting a cross(70,RSI) to sell. Does any body knows when and if he will close
this great trade ? The RSI reached two or three times at 67 or 68 and turned
back.
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<DIV style="FONT: 10pt arial">----- Original Message -----
<DIV style="BACKGROUND: #e4e4e4; font-color: black"><B>From:</B> <A
href="mailto:tsokakis@xxxx"; title=tsokakis@xxxx>Dimitris Tsokakis</A>
</DIV>
<DIV><B>To:</B> <A href="mailto:amibroker@xxxxxxxxxxxxxxx";
title=amibroker@xxxxxxxxxxxxxxx>amibroker@xxxxxxxxxxxxxxx</A> </DIV>
<DIV><B>Sent:</B> Thursday, October 11, 2001 9:27 PM</DIV>
<DIV><B>Subject:</B> New RSI trading system</DIV></DIV>
<DIV><BR></DIV>
<DIV><FONT size=2>Here is one possible explanation, why the two new
systems are more</FONT></DIV>
<DIV><FONT size=2>profitable. In many cases you are protected from wrong
entries.</FONT></DIV>
<DIV><FONT size=2>Look at the long term decline, (nearly 10 weeks) from PEAK
to</FONT></DIV>
<DIV><FONT size=2>TROUGH.</FONT></DIV>
<DIV><FONT size=2>First chart is Modified RSI with Dbuy-Dsell steady
levels.</FONT></DIV>
<DIV><FONT size=2>Below is the new RSI Bollinger Bands system.</FONT></DIV>
<DIV><FONT size=2>1]. All this period, RSI crossed some times 30, whithout
result, but in</FONT></DIV>
<DIV><FONT size=2> both systems you were TOTALLY OUT OF
THE MARKET, protected</FONT></DIV>
<DIV><FONT size=2> from a 50% decline.</FONT></DIV>
<DIV><FONT size=2>2].The ENTRY points are quite reasonable, if you look the
trend and not</FONT></DIV>
<DIV><FONT size=2> the artificial 30 or 25 or anyother
level. In both systems, entries occurred at</FONT></DIV>
<DIV><FONT size=2> RSI~20.</FONT></DIV>
<DIV><FONT size=2>3].EXIT points are also reasonable and occured at RSI levels
~50 for both</FONT></DIV>
<DIV><FONT size=2> systems</FONT></DIV>
<DIV><FONT size=2>4] The last period, RSI crosses again 30, but you are still
out of the market,</FONT></DIV>
<DIV><FONT size=2> waiting in cash for a new signal.
</FONT></DIV>
<DIV><FONT size=2>There is no need to be a prophet to</FONT><FONT size=2>
understand the following ELEMENTARY</FONT></DIV>
<DIV><FONT size=2>things: </FONT></DIV>
<DIV><FONT size=2>With 30/70 system you have already buy and wait at point X. If
the stock drops </FONT></DIV>
<DIV><FONT size=2>down</FONT><FONT size=2> (which will not surprise anybody),
you will be again out of [30,70] and </FONT></DIV>
<DIV><FONT size=2>stay with what you bought or buy again, according to your
trading tactic.</FONT></DIV>
<DIV><FONT size=2>With the new systems, you wait sellers to loose their power
and find a better</FONT></DIV>
<DIV><FONT size=2>entry (perhaps).</FONT></DIV>
<DIV><FONT size=2>In the mean time, you may see some friends, drink a beer,
write to the mail-list</FONT></DIV>
<DIV><FONT size=2>and think about some new system to understand the Market
better.</FONT></DIV>
<DIV><FONT size=2>What do you think about ?</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=2>Dimitris Tsokakis</FONT></DIV>
<DIV><FONT size=2>P. S. A friend of mine (and I write this with his permission),
has the following</FONT></DIV>
<DIV><FONT size=2>...funny problem : He bought at December 2000 cross(RSI,30)
and he is still</FONT></DIV>
<DIV><FONT size=2>waiting a cross(70,RSI) to sell. Does any body knows when and
if he will close</FONT></DIV>
<DIV><FONT size=2>this great trade ? The RSI reached two or three times at 67 or
68 and turned</FONT></DIV>
<DIV><FONT size=2>back.</FONT></DIV>
<DIV> </DIV></BODY></HTML>
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