13 March 2007

Our 1st AGI Trigger

Due to the overwhelming popularity of the 2 Day RSI Indicator, the YukTraderTeam has come up with our own indicator...we call it the AGI (or the Anti-George Indicator). This is named after one George Costanza of Seinfeld fame and the infamous episode where George realizes that to get what he wants he must rethink his every action and do the exact opposite whereas he finally gets the girl, the job and some respect...
So in exact opposition to the rules of the RSI, we postulated that a sell signal would be triggered if the 2 DAY RSI closed above 65 on three successive closes. As of the close on the third day we would short the market. So using the SPY we simulated a 1,000 short as of the close on 12 March @ $140.99. Well cover that short when the 2 Day RSI closes below 15. The only caveat being that RSI is to only be used when the SPY is above it's 200 day MA. We'll waive that rule for now as I want to compare the results when the SPY trades below the 200 MA, if that EVER happens again...jfg.

No comments: