Cool...thanks for checking it out. Ya, I agree about using other setups. I could see by just glancing at a few charts that I would miss a lot of pullbacks in a strong trending market waiting for the RSI to give a signal. He'd probably do better just dumping the RSI and using the support and resistance of the BB for signals. Tho, I might not use such a narrow setting on the BB.
If you have something to say funky...say it. Yes, I felt at the time it seemed like a good strategy. If you have a problem with that, just let me know.
What does it mean/imply when RSI dip below 30? Why do you use 30/35? Why do you set RSI length to 6, and why do you set Bollinger Band to 10/1? What ut mean/imply when price under BB bottom line? If you don't know the answer, then your system will fail. The point is you know what these indicators means, you know how to pick an indicators and tailor them to work for you. Just like in any other fields, there are lot of tools available to choose, but you takes the one that can serve your purpose, so you first need to know what purpopse you want to fullfill. For becoming a trader, you need to go through a stage in which you prove that nothing works, including your system here. After this stage, if you still hang on there, you will start to form something that suites yourself. So long way for you, enjoy it.
Actually, nice comment... Nothing works... then you question, "What is the definition of works?"... then you question, "What the hell do I mean by define/definition?" then you question, "Damn... I trade to make money, who da hell cares how..."
I think this post makes some good points. The real benefit of backtesting is proving to yourself that a lot of the stuff you've learned about in tech analysis books doesn't work. That is, it doesn't work in the sense of producing a workable system. I have never found a purely indicator based system that was profitable over a meaningful period. Of course, an oscillator based OB/OS approach will work like gangbusters in a rangebound market. Unfortunately, you'll give it all back and more when the market is not rangebound. The only intraday systems that I have ever developed that worked identified very specific conditions or patterns and traded off that. Such systems do not trade 4 or 5 times a day. More like 4 or 5 times a month. Most people, myself included, don't have the patience for that, even though it can be nicely profitable.
Hmmmmm...well, the markets kind of slow right now, so I'll take the chance of getting distracted in a heated debate here...lol I don't agree with that. I think there are many methods that work. The real problem is, does it work for you? Just because you can't make money trading divergences, pullbacks, S/R, breakouts or whatever, doesn't mean nothing works. It just means you haven't found a method suited to your personality. IMHO
Thanks everyone for all the input, I appreciate it, I'm going to go back to square one and work on a new strategy. Thanks