Bullish Reversal Trading Strategy Reveals Key Rules
Too vague to test
This strategy cannot be pinned down to testable rules
Buy a bullish reversal day: today's low is below yesterday's low, today's close is above yesterday's close, and the 5-day RSI is below 35. The chart example exits after 5 days; the table shows the best average gain (2.02%) with a 24-day hold.
The exact rules we tested
- 01Instrument: SPX | Signal timeframe: 1d | Direction: long
- 02LONG when: (low < prev_low) AND (close > prev_close) AND (rsi5 < 35)
- 03Entry: market at the signal bar's close
- 04Stop: none (as taught - the trade closes only on its exit rule)
- 05Time exit after 5 bars
- 06Entry fills at the signal bar's close (market-on-close)
- 07Exit signals fill at that bar's close (market-on-close)