My RSI Trading Plan

 

RSI Trading Strategy 

It's a system that signals are generated using a RSI signal for “oscillating” Stocks that perform well in the past using the RSI Strategy (OTW-I use a basket of stocks (90-150)  that perform well using the RSI)

Indicators - Chart Timeframe - Daily

• RSI - Primary System used when price is in trading Range 

• Zero-Lag MACD - Secondary System

• TTM (Optional) - Used to help determine Trending or Trading

• 100 MA (Optional) - Used to help determining direction of the trend

• Zig Zag(Optional)  - Used to help determining direction of the trend

Time Required - Just 30-60 minutes daily but during the trading hours.

Avoid

• Lower time frame charts, even H4 is not reliable, use the Daily Timeframe.

• Risk - Trade small amounts of money and do not take multiple positions Sideways pattern, see below

Entry 1: When the Trend has switched take the trade.  This usually occurs when ZigZag trend reverses (Fractal appears)

• RSI Long - When RSI Crosses 30 upwards from below 30 and trend appears to be reversing

• RSI Short - WhenRSI Crosses 70 downwards from above 70 and trend appears to be reversing

Stop Loss

• Stop loss is currently 2% - but attention is given to 2*ATR above or below the sell strike and Support and Resistance.  

Take Profit/Exit

•  Profit Target Take automatic profit Price moves in your direction by 3%

• Losing options trades - Ater ½ of the original duration (about 10 bars  for an 18 bar play - if it is not a winning - close it.  

Risk Reward

• Hold position for 18 Trading Days or till Profit Target is reached 

• For small accounts risk no more than 5% on each trade (e.g. A $5000 account should risk no more than $600-$700 per trade) I have chosen $1000 to be agressive

• 1 : 1.5 - Risk $1 to make $1.50