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First, the turtle trading secrets:
This is a channel breakout system. Buy when the high crosses above the highest high of the previous 55 bars. Use an average true range based stop as a trailing stop loss. Then, keep on adding to your initial position if the move goes in your favor. A second buy signal comes when the high crosses above the high of the previous 20 bars provided the previous trade was a loss.
Sell rules are reversed.
The RSI
Open up a chart which shows a sustained trend. Let us assume it is an uptrend. You will see that the RSI goes to 70 quickly, then remains in that area, for many bars. Here, the first move above 70 is an indication that a strong up move is starting. The strategy should be to avoid short selling and buy every time we have a dip.
More thoughts are welcome.
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