Fozzy Alt... one more approach to the Da
Fozzy describes his system very well, which is an offshoot of the dynamic RSI system. I highly recommend reading his description if you haven't already.
My summary: The 8-period RSI is plotted on the daily chart along with the 8-period MA of that RSI. When the RSI crosses the MA upward or downward, it is considered a buy or sell signal. You wait until the end of the day the signal is generated before placing any orders - i.e. you don't place an order just because the cross starts to appear, you wait for it to solidify and take action at the start of the next day.
Fozzy's original rules also included drawing Bollinger Bands for the RSI, accepting only buy signals formed below the mid-BB line, and only accepting sell signals formed above the mid-BB line. While I respect Fozzy's opinion and research, my own research so far advises me not to use this BB filter. Indicators that I will attach (most likely in a future post) do show BB for those who wish to observe the Fozzy filter.
This is a daily system. It hasn't been tested on a smaller time frame (by me, anyway). I don't know if it works on smaller time frames. The reason I (and Fozzy) use these similar systems is that we have day jobs and can't sit around looking at charts all day. The idea of this system is that you can check in at 0:00 GMT, place a market order for the day (if any signals appear), and get out.
I would argue that any such "set it and forget it" system is by default paralyzed. Basically I'm trying to make the best of a bad situation. Backtesting this system on GBPUSD since early 2006 shows good results (I will post the exact results later), so I will forward test it.
I'm not advocating this approach. This is a research project. As I've said before, let's have an intelligent, respectful conversation and educate each other.
My summary: The 8-period RSI is plotted on the daily chart along with the 8-period MA of that RSI. When the RSI crosses the MA upward or downward, it is considered a buy or sell signal. You wait until the end of the day the signal is generated before placing any orders - i.e. you don't place an order just because the cross starts to appear, you wait for it to solidify and take action at the start of the next day.
Fozzy's original rules also included drawing Bollinger Bands for the RSI, accepting only buy signals formed below the mid-BB line, and only accepting sell signals formed above the mid-BB line. While I respect Fozzy's opinion and research, my own research so far advises me not to use this BB filter. Indicators that I will attach (most likely in a future post) do show BB for those who wish to observe the Fozzy filter.
This is a daily system. It hasn't been tested on a smaller time frame (by me, anyway). I don't know if it works on smaller time frames. The reason I (and Fozzy) use these similar systems is that we have day jobs and can't sit around looking at charts all day. The idea of this system is that you can check in at 0:00 GMT, place a market order for the day (if any signals appear), and get out.
I would argue that any such "set it and forget it" system is by default paralyzed. Basically I'm trying to make the best of a bad situation. Backtesting this system on GBPUSD since early 2006 shows good results (I will post the exact results later), so I will forward test it.
I'm not advocating this approach. This is a research project. As I've said before, let's have an intelligent, respectful conversation and educate each other.
📦 Summary of post attachments (3)
Below are all the files (3) shared in the reply.
💡 Featured Recommendations
✍️ Latest by the author
- •
- •
- •
- •
- •
- •
📌 Popular topics
- •
- •
- •
- •
- •
- •
- •
- •
🔗 You May Be Interested In
- •
- •
- •
- •
- •
- •