Tag: RSI trading

I made a Trading Indicator that DISAPPEARS in the Choppy Market – Trading Rush Choppy Market Indicator

Post author By Trading Rush
Post date July 15, 2021
1 Comment on I made a Trading Indicator that DISAPPEARS in the Choppy Market – Trading Rush Choppy Market Indicator

trading rush choppy market indicator forex stock market download

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Tag: RSI trading

(FREE) Trading Rush Choppy Market : https://www.patreon.com/posts/trading-rush-52806962

I made a Trading Indicator that disappears in the choppy markets, so you don’t have to lose money in them. We are also going to take more than 100 trades with this disappearing indicator to see if it actually increases the win rate of a trading strategy. First, we created the Beep Boop indicator in the AI trades video, and it was surprisingly good! Then we created the Trading Rush Moving Average that disappears in the range market, and now, introducing the Trading Rush Choppy Market, which disappears in the choppy market, and even shows the strength of the good market.

If you have watched chapter 14 in the Trading Rush Price Action Course, you probably remember the simple but effective technique that you can use to filter the choppy markets. The Trading Rush Choppy Market indicator improves that technique even further.

The TR Choppy Market has three main components. When the price movement is good, the Trading Rush Choppy Market will indicate it with light green bars. When the price movement is extremely good, the Trading Rush Choppy Market will indicate it with dark green bars. However, if the price movement is choppy, the green bars will simply disappear.

But then there is this line that looks like a moving average because it is and it is showing the average strength of the good price movement. For example, when the price movement is good, and multiple green bars are formed in the Trading Rush Choppy Market Indicator, the average line will move in the upward direction. But when the price is choppy and not worth trading, the green bars will not only disappear, but the average line will start falling towards the zero line.

The TR Choppy Market Indicator ranges from zero to a hundred, and the higher the average line is, the better the price movement is. As you can see here, when the price movement is good and not choppy, the average line is staying above 20. And when the price gets choppy, the average line falls towards the zero line, and stays below 20 for the most part.

This is the first version of the Trading Rush Choppy Market Indicator, and while testing I have found that 20 is the starting level that differentiates the good vs bad market, and the higher you go, the more choppy market you are going to filter. By default, the Trading Rush Choppy Market will come with a horizontal line that you can adjust. If you noticed that on a particular chart 50 is the level that differentiates the good vs bad market, you can simply move the horizontal line to 50, and with that, you will also adjust the size of the green bars.

But now, let’s put the Trading Rush Choppy Market Indicator to the real test, to see if it actually filters the choppy markets.

But, we need a trading strategy that gives many entry signals in a short amount of time, and a market that is choppy and trending, so we can see if the win rate increases with the Trading Rush Choppy Market indicator.

For the indicator, we simply come to the Trading Rush website, look at the TR Scores of many different strategies that we tested 100 Times, and then select the indicator that gave a bad win rate.

Let’s use the CCI indicator that only got a TR Score of 3.5 in the win rate category, and I found AUD JPY, which is trending and is choppy on the 5 mins timeframe.

To see if the win rate goes up with the Trading Rush Choppy Market, I took more than 400 trades in total with different settings.

When I took 100 trades with the CCI indicator without the TR Choppy Market filter, it got a 29 percent win rate with a 1.5 to 1 reward risk ratio. The win rate is so low because the CCI has a bad win rate in the first place, and on top of that, we are testing it in the choppy market. But when I tested it again with the Trading Rush Choppy Market filter, with the 20 level to differentiate clean vs choppy market, it increased the win rate by 3 percent on the same market structure. And with the 30 level, the win rate was 4 percent higher. And when the 40 level was used to differentiate good vs bad market, the win rate was 12 percent higher, but I ran out of data and was only able to take around 80 trades. Adding around 20 more trades shouldn’t make a big difference to the win rate, because others had pretty similar win rates at the 78th mark as they did at 100.

In other words, the win rate significantly improved with Trading Rush Choppy Market Indicator, and it got better with higher filtering levels.

If we compare charts side by side, you can see that on this chart, the price got choppy in an uptrend. The CCI indicator on its own gave 8 false entry signals. But with the Trading Rush Choppy Market filter, 6 out of 8 signals disappeared. Here, CCI on its own gave 8 signals in the choppy market, but with the TR Choppy Market filter, only 2 remained. On this chart, the CCI indicator gave 10 bad signals, but with the Trading Rush Choppy Market Indicator, 60 percent of the bad trades were filtered.

Does this mean the third Trading Rush indicator we created is successfully filtering the choppy and bad markets? According to the data, it definitely is, and you can try it yourself because it is absolutely FREE just like all the indicators we have created so far! I will share the source code in a public Patreon Post with the installation steps! LINK is in the description! Also, support Trading Rush on Patreon and get to see In-Depth Trade Analysis and Trade Opportunity Signals. Thanks for watching!

All Videos Trading Strategies Trading Strategies Tested 100 Times Uncategorized

I tested RSI + SUPERTREND Trading Strategy 100 TIMES… so you don’t have to

Post author By Trading Rush
Post date February 14, 2021

RSI supertrend trading strategies

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Does the RSI Supertrend Trading strategy even work? What will happen if you combine RSI indicator with the Supertrend Indicator? Will you make money in trading? To find out, I took 100 Trades with the RSI with Supertrend trading strategy, so you don’t have to. We tested the RSI and Supertrend strategies separately on the Trading Rush channel and they both had a profitable win rate. RSI strategy got a win rate around 49 percent with a 1.5 to 1 Reward Risk Ratio, and the Supertrend indicator on its own got an average win rate. To see the Supertrend trading strategy, check out the Supertrend strategy video on this channel.

When we tested the RSI indicator last time, we entered the trade when the RSI crossed below or above the 30 and 70 levels. When RSI value went above the 30 level, we bought. And when the RSI value went below the 70 level, we sold. On the other hand, with the supertrend indicator, we bought when the supertrend indicator indicated an uptrend, and sold when the supertrend indicator indicated a down trend.

This worked fine! Both trading strategies got a profitable win rate, and made money in the Trading Rush App. But if we want to combine RSI and Supertrend together to see what happens, we will have to modify the strategy a little bit.

You see, the supertrend indicator is showing the short term trend direction. And the RSI indicator is showing the oversold and overbought areas. But as some of you already know, RSI works good when the market is in a range. You can use it to trade the trend. But when the market is moving sideways, some traders sell and buy when the RSI value reaches overbought and oversold zones respectively.

But many times, when the price is moving in one direction, let’s say in an uptrend, the RSI will go above overbought 70 level, and many traders will see this as an increase in buying pressure. Similar thing applies when RSI value goes below the 30 level. Instead of buying, many traders will see the RSI crossing below the 30 level as an increase in selling pressure, and will sell instead of buying.

When we combine the RSI and Supertrend indicator, we buy, when the RSI crosses above the 70 level, only if the supertrend indicator is showing an uptrend. And we will sell when the RSI crosses below the 30 level, if the supertrend indicator is showing a down trend.

Subscribers of the Trading Rush channel probably noticed, that we are not using the 200 period moving average this time. Wouldn’t that affect the win rate, and the end result while comparing it with previously tested strategies? Well yes, but this time, we wanted to see what happens if we don’t use a moving average to find the trend, and use the supertrend indicator instead.

Since we are using the supertrend, in a long RSI and Supertrend setup, we can set the stop loss below it. And in a short setup, you can set the stop loss above the supertrend indicator.

Look at this example. The supertrend indicator is showing a short term uptrend, so we will only look for long entry signals. We wait for the RSI value to cross above the 70 level. When there is a buy signal, we enter the trade and set the stop loss below the supertrend indicator.

On this chart, the supertrend indicator is showing a downtrend, so we will only take short entry signals. We wait for the RSI to cross below the 30 level this time, and when that happens, we will take a short position and we will set the stop loss above the supertrend indicator. Simple as that.

So I tested the RSI with the supertrend indicator 100 times, and here’s what happened.

Number 1. As you can see the profit graph with the RSI and Supertrend strategy, shot up. The profit in the Trading Rush App went from 0 to around 2000 in just 20 trades. At the beginning it gave a lot of winning trades in a row. But then the profit line stopped going up, and started to go sideways. Between zero and 20th trade, it was like a rocket ship, but from 21st to around 60 trades, it was in a range. Then, the profit went almost straight down.

But Why is the Supertrend with RSI giving such a result? Well, while testing, I noticed that sometimes, RSI gives multiple signals in a short period of time. At the beginning, when the price was trending up, RSI with supertrend gave a lot of signals in a row, and almost all of them were won. That’s why you see a big upward move on the profit graph. When the trend was slow, or was changing directions frequently, some trades were won, some trades were lost. Then the price was going in the sideways direction. And after that, when price started trending strongly in one direction, multiple signals were taken in a short time period and won. But that’s not the only thing I found out.

Number 2. We used the Supertrend indicator to find the short term trend direction. But while testing 100 times, I found out that almost all buy RSI signals appeared when the Supertrend was showing an uptrend. And almost all sell signals appeared when supertrend was showing a down trend. In other words, when RSI crosses above the 70 level, the supertrend will most likely show an uptrend. And when RSI crosses below the 30 level, supertrend will most likely show a down trend. With this RSI and Supertrend strategy, supertrend was more of a stop loss indicator rather than a trend direction indicator.

After 100 trades, the RSI Supertrend trading strategy got an approximate win rate of 45 percent. The reward risk ratio was 1.5 to 1, and it got 8 winning trades in a row, but lost 12 trades in a row. So let’s give the RSI Supertrend strategy a TR score.

It gets a 5 out of ten in the Win Rate Category.

And gets a 6.5 out of 10 in the Easy to Use Category. All you have to do is look at the RSI value and set the stop loss below or above the supertrend line.

Even though the win rate was profitable in the Trading Rush App, there were a lot of signals taken in a short period of time. In reality, when you enter a trade, you are not going to take another trade, just a few candles after that. So in the Reliability category, it gets a 4 out of 10.

And even though the RSI Supertrend strategy made money in the end, the profit line went almost straight up at the start, went sideways for a while, and then went almost straight down. That is not as consistent as some other strategies we have seen on this channel. So in the consistent profits category, it gets a 4.5 out of 10.

When you combine the RSI and Supertrend indicator, the entry signals are generated in the direction of the trend. But while testing, I noticed that the supertrend trading strategy we tested 100 times, gave better quality signals on its own. So in the quality of the trades category, it gets a 6.3 out of 10 which is a bit less than the supertrend got on its own.

So the TR score is 26.3 out of 50. And the RSI Supertrend Trading Strategy ranks 15th from the top, just above the Stochastic indicator, and below the Bollinger Bands Trading Strategy.

So that’s all.

All Videos Trading Strategies Trading Strategies Tested 100 Times Uncategorized

I tested RSI + ADX Trading Strategy 100 TIMES and you should…

Post author By Trading Rush
Post date January 9, 2021
1 Comment on I tested RSI + ADX Trading Strategy 100 TIMES and you should…

RSI ADX trading strategies

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What’s the win rate of the RSI and ADX trading strategy? Can it make money in the long run? We have tested them both 100 times separately on the Trading Rush Channel, RSI had a profitable win rate, but ADX didn’t! RSI had a profitable win rate because we used it to find the overbought and oversold conditions. But many people use it in an opposite way. Instead of buying when the price is oversold, they buy when the price is overbought. Similarly, instead of selling when the price is overbought, they sell when the price is oversold. Why would anyone sell when the price is already oversold, and why would anyone buy a stock or forex pair, when the price is at the top? Well, according to many traders, when the price is in an uptrend, the overbought RSI level actually means an increase in buying pressure. In simple words, too many people are buying, so the price will go up. Similarly, when the RSI is oversold in a downtrend, it means that too many people are selling, and the price will go down. Now, if you have been watching the Trading Rush Channel for a while, you know I don’t recommend buying the top and selling at the bottom of a move, because there are better ways of entering a trade. But what if we are wrong, and taking opposite trades with the RSI indicator actually makes money? What’s the winrate of RSI with ADX Trading strategy? Well, why don’t we take 100 Trades with it to find the truth? And at the end of the video, I’m going to give it a Trading Rush Score, just like we have given to many other strategies we have tested so far.

By default, the RSI indicator will come with 70 and 30 as overbought and oversold levels respectively. But instead of buying at the bottom of the RSI where the oversold level is, we will buy when the RSI is at the top. So the buy entry in the opposite RSI strategy, is when the RSI crosses above the 70 level. Similarly, instead of selling at the top of the RSI where the overbought level is, we will sell when the RSI is at the bottom. So the sell entry in the opposite RSI trading strategy, is when the RSI crosses below the 30 level. Now subscribers of Trading Rush Channel can already tell, that this trading setup has no trend filter. In this trading setup, you are not only buying at the top, but you will also buy when the price is downtrending. This setup on its own will give a lot of false signals. So to find the direction of the long term trend, we will use the 200 exponential moving average. If price is above it, it means that there is an uptrend going on. And if the price is below it, it means that the price is in a downtrend. But if you look closely, you will find another big problem with taking opposite trades with the RSI indicator. You see, RSI is a range indicator, it works best when the market is in a range. And you can use it in a trending market, to find the end of the pullback. But in this setup, since we are taking opposite signals, almost all signals in the range will be false. Because when the price reaches the overbought level, it will have a higher probability of going down. And when the price reaches the oversold level, it will have a higher probability of going up instead of down. That’s where the ADX indicator comes into play. If you have watched the ADX indicator on the Trading Rush Channel, you know that you can use the ADX indicator, to find if the price is trending or not. When the ADX value is above 25, price is considered to be trending.

So our complete RSI and ADX trading strategy goes something like this, and I took 100 trades with it the same way. The buy entry signal is when, the RSI crosses above the 70 level. But at the same time to filter false signals, price has to be above the 200 period moving average, and ADX value has to be above 25. Since we are buying at the top of the trend, setting the stoploss below the pullback, is not such a good idea. The size of the stoploss will be too big. So instead of setting the stoploss below the pullback, we will use the 21 period exponential moving average, and will set the stoploss below it.

Similarly, the sell entry signal is when, the RSI crosses below the 30 level. But at the same time, price has to be below the 200 moving average, and ADX value has to be above 25. Remember, in both of these setups, ADX has to be above 25, and not below. The stoploss in the short setup, goes above the 21 period exponential moving average.

In this example, RSI is crossing above the 70 level, ADX is above 25, and price is above the 200 moving average. So long entry is when the RSI crosses above 70, and stoploss below the 21 moving average.

And in this example, RSI is crossing below the 30 level, ADX is above 25, and price is below the 200 moving average. So short entry is when the RSI crosses below 30, and stoploss above the 21 moving average.

So I tested the RSI with ADX trading strategy 100 times, and here’s what I found out.

Number 1. ADX is the best part about this trading strategy. Because we are not taking trades with the RSI indicator like most do, the last thing we want is to take trades when the RSI is in a range. And while testing, I found out that ADX was filtering almost all the false signals in the range market. As you can see in the Official Trading Rush App, the profit graph is going up at the start. But then the problems began to appear.

Number 2. Most of the time when RSI crossed above the 70 level, the price was at the top of the trend. You see, most of the time the price is in a range. And when it does move, it doesn’t go infinitely in a straight line. There are strong trends, there are slow trends. So most of the time when you buy when the RSI crosses above 70 level, you end up buying near the top of the swing high. Same applies to the short setup. When you sell at the bottom of the RSI, you end up selling at the bottom of trend. Because of this, the profit graph in the Trading Rush App went down. And the RSI ADX trading strategy lost 13 trades in a row. This is one of the worst strategies we have seen on this channel yet. Interesting how indicators on their own will give a very high win rate, but as soon as you mix a bunch of indicators and create a mess, they will give one of the worst win rates you will see. Bollinger Bands and RSI both had good win rates, but as soon as we mixed them, they gave a horrible win rate as well. If you haven’t watched the Bollinger Bands and RSI video on the Trading Rush channel, go watch now to see how the 55 win rate strategy gives 35 percent win rate.

After taking 100 trades with the RSI ADX trading strategy, I got an approximate win rate of 36 percent, which is one of the worst win rates we have seen on this channel. There are strategies on this channel that give around 60 percent win rate with the same 1.5 to 1 reward risk ratio. In the Trading Rush App, the profit graph went down. The RSI ADX strategy gave 5 winning trades in a row, but lost 13 times in a row. So why don’t we give it a Trading Rush score, and see how it compares with other strategies we have tested so far.

In the win rate category, it gets a 3.5 out of 10. The win rate is bad and if you trade with this strategy, you will actually lose money in the long run.

In the easy to use category, it gets a 6 out of 10. All you have to do is look at the 200 EMA, ADX value, when the RSI crosses above or below a level.

In the Reliability category, it gets a 3.5 out of 10. It gives many false signals when the price is in a slow trend.

In the Consistent Profits category, it gets a 0 out of 10, well because it didn’t make any money, and it gave 13 losing trades in a row.

In the Quality of the trades category, it gets a 3.5 out of ten. The strategy gives buy entry signals at the top of the swing high, and gives sell entry signals when the price is at the bottom. And after taking 100 trades, you saw that trading like this has a lower probability of making money in the long run. Other strategies we have tested on the Trading Rush channel, gave better quality signals. So use them instead!

So the TR score is 16.5 out of 50. And RSI ADX strategy ranks second last, just above the Bollinger Bands RSI trading strategy, and with the CCI indicator.

All Videos Trading Strategies Trading Strategies Tested 100 Times Uncategorized

EXTREME RSI Trading Strategy – I tested 100 TIMES to see if it is better than the RSI Strategies

Post author By Trading Rush
Post date September 24, 2020

Connors RSI Trading Strategy

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Does the RSI Trading Strategy work? If yes, what is the win rate of the RSI Indicator? Well if you have been following the Trading Rush Channel for a while, you already know if the RSI Strategy works or not, that’s because we have tested it 100 times to find its win rate. But similar to the RSI indicator, there is a new and interesting indicator called the Connors RSI indicator. Does this Connors RSI indicator work? If yes, will it make you more money than the normal RSI trading strategy? In this video, I’m going to test the Connors RSI trading strategy 100 times to find it’s win rate. If you are watching the Trading Rush Channel for the first time, subscribe to the channel, because we test and have tested many different Trading Strategies 100 times to find their win rates. After all, you don’t want to risk your money on a Trading Strategy that doesn’t even work.

The original RSI indicator was developed by J. Welles Wilder, Connors RSI on the other hand is made by Larry Connors, but heavily relies on the work of J. Welles Wilder. On Trading View, this is how the Connors RSI indicator looks like. Unlike the RSI indicator, the Connors RSI has three components called the RSI, Up Down Length, and the Rate of Change. You can say that the Connors RSI is more of a tool, that is based on the RSI indicator. If it is a good thing or not, we will find that after we test it 100 times.

Just like the RSI indicator, the Connors RSI also ranges from 0 to 100, but in this indicator, the RSI line is called the CRSI line. Now the original RSI indicator came with the default over bought and over sold levels of 70 and 30 respectively. On Trading View, the Connors RSI also comes with the default levels of 70 and 30, but the creator of the Indicator Larry Connors, doesn’t recommend using those levels. Instead, Connors recommends using the 90 and 10 as the over bought and over sold levels. Furthermore, Conner also mentions that the higher the CRSI value goes above the 90 level, the higher is the chance of making a big profit. Similarly, the lower the CRSI value goes below 10, the higher is the probability of price making a big move in the entry direction.

Here’s how the Connors RSI Trading Strategy goes.

If you have watched other Trading strategy videos on the Trading Rush Channel, you know I always recommend using the 200 period moving average to find the long term trend. Well, guess what. Larry Connors also recommends using the 200 period moving average with the Connors RSI trading strategy. So in this video, we don’t have to modify the CRSI Trading Strategy at all, because it already uses the false signal filters just like we do on this channel.

So the buy signal, is when the price and the candle is completely above the 200 period moving average, and the CRSI is coming out of the over sold zone, which is 10 and below.

Similarly, the sell signal is when the price and the candle is completely below the 200 period moving average, and the CRSI is coming out of the over bought zone, which is 90 and above.

Now I have seen many people recommending not using a stoploss with this strategy. But if you have watched my video where I took 100 trades with stoploss and without stoploss, you know not using a stoploss is a very bad idea, especially if you are a new trader. If you haven’t watched that 100 trades Stoploss vs No Stoploss video, go watch now to see what can happen to your account balance if you don’t use a stoploss in trading.

Since the Connors RSI gives many signals in a shorter amount of time, while backtesting, In the long setup, I have set the stoploss slightly below the pullback. Similarly, in a short setup, I have set the stoploss slightly above the pullback.

With the default CRSI settings, I have tested the Connors RSI Trading Strategy 100 times, and here’s what happened.

Number 1. Unlike the original Relative strength index, the Connors Relative strength index gives a lot of entry signals. Since it already uses a 200 period moving average to filter false signals, some losing trades were avoided. The Connors RSI trading strategy was tested 100 times with the help of the Trading Rush App. You should test your Trading Strategy with the Official Trading Rush App as well. It saves a lot of time while backtesting a strategy because it calculates the profit graph, the win rate, and other useful data in just one click. Download it now from the Play Store or using the link in the description.

As you can see in the Trading Rush App, the profit graph goes up at the start because the entry signals given by the Connors RSI strategy were working. Price was reversing after reaching the over bought and over sold zones.

Number 2. While backtesting, the entry signals that were right, sometimes had a very high profit potential. If you are a trader that trails the stoploss to catch the big move, you can make a big profit when the Connors RSI gives a correct entry signal. But as you already know, trailing a stoploss requires a good amount of patience and emotional discipline. If you are a new trader, it is a good idea to stick to the fixed profit and stoploss orders to take advantage of the consistent profits.

Number 3. Since I have used the 1.5 to 1 reward risk ratio while testing other strategies 100 times, I have used the same reward to risk ratio here as well. But while backtesting, I noticed that the Connors RSI was giving entry signals that were too early. When the entry signal was right, the 1.5 times profit target was easily achieved because the stoploss was very small. But because of the way to early entry signals, the stoploss was easily hit most of the time. The Connors RSI trading strategy simply gives a lot of entry signals that are way to early than the actual price reversal.

So, after testing the Connors RSI trading strategy 100 times, I got the win rate of approximately 39 percent. Which is to be honest, is one of the worst win rate we have gotten in the strategies tested 100 times series. If you look at the profit graph in the Trading Rush App, you will notice that the profit line doesn’t appear to be going in one way like some of the other strategies we have seen on this channel. It looks more like the trades were taken randomly. For example, if we compare it with the Profit graph of the simple moving average crossover strategy, you can tell that the strategies like the SMA crossover gives way better and consistent profit than this. In the backtest, I lost 7 trades in a row, and won 4 in a row. The starting balance was 10000, and at one point the account balance was up by 850, but then everything came down as I took more trades. At the end, the account in the Trading Rush App was down by 250. The original RSI trading strategy that we tested 100 times, had way better win rate than this. So it is a good idea to stick with the regular RSI trading strategy, instead of risking your money on this thing.

That’s all. Now you know more about the Connors RSI trading strategy. Like the video if you liked it. Subscribe and ring that notification bell to see more trading strategies tested 100 times. After all, you don’t want to use a strategy that does not work at all. Download the Official Trading Rush App using the link in the description, and thanks to all the amazing Patrons who support the Trading Rush Channel on Patreon. You make these videos possible.