Simple Smoothed RSI Crossover Strategy

Nifty Daily Charts with Smoothed RSI crossover Signals
Nifty Daily Charts

Here is the simple smoothed RSI crossover Long only strategy can be practiced on higher timeframes especially with daily timeframe with controlled risk. It catches the big trends and gets little losses during sideways movement with a descent amount of winning ratio. Strategy suits for Nifty and Bank Nifty future traders willing to take positional trades based on EOD chart.

Buy or Sell Rules
1)Buy on Positive Smoothed RSI crossover.(indicated by Green Arrow)
2)Exit on Negative Smoothed RSI crossover.(indicated by Red Arrow)

It is recommended to take Buy or Long Exit decision should be taken close to EOD (between 3:20p.m-3.30p.m). To take decision on the next day after the signal settradedelays(1,1,1,1) should be defined in the afl code.

Recommended Timeframe
Daily – Long and Exit Strategy

StopLoss
Preferred static Stoploss(intraday Exit Stop) is 2.5*ATR of the close price.

Backtested Results (Nifty Futures EOD-timeframe)

Backtesting done for the 14years of nifty futures with Initial Capital of Rs2,00,000 , 2 lots of fixed nifty lot size with Rs100/leg brokerage included.

Backtested Results

Equity Curve
Portfolio Equity

Drawdown Curve
Drawdown

Profit Table
Profit Table

Download Smoothed RSI Strategy- Backtested Results

Smoothed RSI Crossover Strategy – Amibroker AFL code

Related Readings and Observations

Comments

  1. chirag says

    Can you please send me an e-mail regarding how to get amibroker software ? what is procedure? What are subscription charges ? I am from Ahmedabad,Gujarat so is there any of your vendor or associate who can help me to learn this charting and AFL ? Please reply.

    • says

      1)Download the ZIP file(you can find at the end of the article) and unzip it
      2)And now copy the afl file and paste it to amibroker\formulas\basic folder and now apply the indicator from amibroker charts section.

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