Basics of RSI Relative Strength Index

Basic video explaining and testing Relative Strength Index (RSI) on some popular stocks such as: Apple, Google, Nvidia, Boeing, Alibaba, Tesla, Amazon and more...



Comments

Post a Comment

Popular posts from this blog

Best Automated Trading Software with Multiple Advanced Features

Image
BuildAlpha enables you to stress test: BuildAlpha is the most trusted Automated Online Trading Software that needs no programming knowledge. All facilities are just a click away. The main feature of an Automated Trading Software is to enable a trader or a money manager to facsimile the trades of others. The software is well designed to provide a platform for novice traders. One cans stress test his entry signal thus giving the traders the confidence to engage in trading with a less available span of time and adequate knowledge. If you need any sort of guidance Build Alpha offers you a private user forum and a user guide that comes along with every license. A 35 plus video course comes along with it, that explains the software from start to finish, highlighting each feature with few examples. Do’s and Don’ts have been included to enable better handling and safe trading. Numerous greenhorn traders have picked up Build Alpha as it is designed to work step-by-step and the videos ...
Read more

Human Can Add Value to Automated Trading Process

Image
First, I need to describe over-fitting or more commonly known as curve-fitting. Curve-fitting is creating a model that too “perfectly” fits your sample data and will not generalize well on new unseen data. In trading, this can be thought of as your model too closely fits the historical data and will surely fail/struggle to adapt to new live data. Here are two visuals I found to help illustrate this idea of curve-fitting. So how can we avoid curve-fitting? The simplest and best way to avoid curve-fitting is to use “Out of Sample” data. We simply designate a portion of our historical data (say the last 30% of the test period) to act as our unseen or “Out of Sample” data. We then go about our normal process designing/testing rules for trading or investing using only the first 70% of the test period or the “In Sample” data. After finding a satisfactory trading method we pull out our Out of Sample data and test on the last 30% of our test period. It is often said ...
Read more

Noise Test

Image
First, let’s talk about overfitting and what it is. I will simply define it as fitting a function or model to data so well that the function or model is not generalizable and cannot/will not work on another data set. In trading terms, it is designing a strategy that trades historical data so well that it will surely fail on new data . Build Alpha :  The first and most obvious test to prevent curve fitting is out of sample testing. In other posts I’ve described this, but in short, it is simply withholding a portion of your data to “validate” the strategy. For example, you have 10 years worth of data and you designate the first or last 30% to be out of sample. You build your model on the remaining seven years of data and then validate it on the withheld 30% or out of sample data. However, and for various reasons, this might not be enough to prevent against curve fitting. There are two parts to the underlying data: the signal and the noise. It is often said that when something i...
Read more