To implement the RSI and Stochastic systems described by Rudy Teseo in the NeuroShell Trader, you must create a Trading Strategy for each system.
The RSI trading system:
To create the RSI trading system, select ‘New Trading Strategy …’ from the ‘Insert’ menu and enter the following long and short entry conditions in the appropriate locations of the Trading Strategy Wizard:
Generate a buy long STOP order if ALL of the following are true:
Crossover Above ( RSI ( Close, 14 ), 30 )
STOP PRICE: Add2 ( High, 1 )
Generate a sell short STOP order if ALL of the following are true:
Crossover Below ( RSI ( Close, 14 ), 70 )
STOP PRICE: Sub ( Low, 1 )
If you have the NeuroShell Trader Professional, you can also choose whether or not the system parameters should be optimized. After backtesting the trading strategy, use the ‘Detailed Analysis …’ button to view the backtest and trade-by-trade statistics for the RSI system.
The Stochastic trading system:
To create the Stochastic trading system, select ‘New Trading Strategy …’ from the ‘Insert’ menu and enter the following long and short entry conditions in the appropriate locations of the Trading Strategy Wizard:
Generate a buy long STOP order if ALL of the following are true:
A<B ( Stochastic%D ( High, Low, Close, 5, 5 ), 20 )
Crossover Above ( Stochastic%K( High, Low, Close, 5 ), Stochastic%D ( High, Low, Close, 5, 5 ) )
STOP PRICE: Add2 ( High, 1 )
Generate a sell short STOP order if ALL of the following are true:
A>B ( Stochastic%D ( High, Low, Close, 5, 5 ), 80 )
Crossover Below ( Stochastic%K( High, Low, Close, 5 ), Stochastic%D ( High, Low, Close, 5, 5 ) )
STOP PRICE: Sub ( Low, 1 )
Once again, if you have the NeuroShell Trader Professional, you can choose whether or not the system parameters should be optimized and after backtesting you can use the ‘Detailed Analysis …’ button to view the backtest and trade-by-trade statistics for the Stochastic system.
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