I have an RSI system that has been profitable every year for the last 15 years. Maybe you are mixing RSI and oranges
Is your system automated, that is 100% rule based so that it could be programmed in a computer and operate without your or any human intervention? Does it include any measures, factors or metrics in addition to the RSI? My analysis of the RSI was as an independent variable in a very sparse trading system shell and was evaluated on about 20 years of data for several dozen instruments. The mathematics indicated that the RSI had almost zero predictive value (on a par with chicken entrails). Since I don't know what your system involves I can't speak to why it works except to say that if it is based only on RSI you are probably just lucky and mistaking that luck for predictive functionality.
RSI is one of the best indicators if you know how to use it but using it properly is an edge nobody will talk about.
Jerry030, Orange looks really cool. Have you used it at all? I am learning how to do some basic stuff in R, but Orange seems intriguing if I were to ever want to try a data mining strategy (which is way above my head at this point).
Of course it is. It is just that when subjected to rigorous statistical evaluation over decades of data it exhibits virtually zero predictive ability......on the level of chicken entrails. Now we should not knock chicken entrails. The Romans used them to predict the out come of battles and did well for 600 years.....until the damn Germans destroyed their civilization. Perhaps they ran out of chickens and started using duck entrails which modern scientific analysis has shown to always predict the reverse of what will actually happen. While I will not reveal the secrets of Duck Entrail Trading here, you can attend my seminar next month for $4,000. I promise a surprise visit by J. Wells Wielder's ghost.
I have just started using it. The appeal to me as a software engineer is there is no programming! I'm so tired of endless coding to build data flow and process infrastructure.
Sadly I'm not much into religious trading. I approach it from a scientific perspective. You conduct an experiment: if x then what is y?, if very similar to x what is y?. You repeat this over and over again. It's called the scientific method. It is used to test everything from new drugs to alloy composition of auto power train components. In functional trading systems it is called backtesting. If it did not work at any time in the past the probability that it will magically start working just when I place a trade is pretty close to the null set. However if you like this kind of thing I would suggest adding Duck Entrails to the RSI calculation after consultation with J. Wells Wilders ghost. Jesus be with you.