SPY Trading Strategy Using RSI

In this post, we test an RSI SPY trading strategy. It turns out that our hypothesis is correct: the RSI works well on SPY. Even better, we improve the strategy by adding one extra indicator.

We backtest the following trading rules:

* If RSI(2) is less than 15, then enter at the close.

* Exit on close if today's close is higher than yesterday's high.

Below is the accumulated profit curve from 1993 until today (Shown in the image)

We have an improved strategy by adding a simple parameter that significantly improves the result. You can check it out here >>

https://www.quantifiedstrategies.com/rsi2-on-spy/